Australia plans $33 million fine in proposed tech law

Tech companies could be at risk of being fined 50 million Australian dollars ($33 million USD) if a new proposed law goes through. Australia’s Labor government wants to make it known that citizens should have the right to easily switch between services.

In a speech, Assistant Treasurer Stephen Jones said, “The dominant platforms can charge higher costs, reduce choice, and use sneaky tactics to lock consumers into using certain products. Innovation outside of the established players becomes almost impossible.”

If the law is signed into effect, it would allow regulators to investigate and stamp out anti-competitive practices. It functions similarly to the European Union’s Digital Market Act (DMA), which provides additional protections for consumers.

That law assigns the term “gatekeeper” to select companies. It doesn’t just affect major players like Apple and Microsoft, but also other parent companies of platforms like TikTok and Facebook.

Apple is currently under fire for breaking the DMA, as its App Store practices are incredibly restrictive to the user. The Cupertino company is now forced to allow those within the EU to be able to install their choice of third-party app store.

Australia’s goal is to have something in place like this, allowing its citizens to not be forced into a tech ecosystem. For example, the government could find issues with Google’s domination in the maps space on Android.

The Australian government has come down heavy on tech companies in recent months. Last week, it signed into law the world’s first under-16 social media ban. This has been met with pushback by companies like Meta, who risk losing a good portion of their audience to it.

It has also taken Elon Musk to task for X’s mismanagement of hate speech and is currently chasing AI regulation. The government has also said it’ll fine companies spreading misinformation.

Australia has already successfully sued Google based on how it handles set-up processes during the first time turning on an Android device.

Featured image: pmc.gov.au, Flickr

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