Proposed digital competition reforms a welcome boost to transparency and competition in big tech sector

2 December 2024

Under the plans, a new digital competition regime would impose upfront rules on tech giants like Google and Apple to address issues affecting consumers and businesses using their platforms.

App stores and ad tech are proposed to be the first two services to be investigated under the new regime, with penalties of up to $50 million for companies that fail to comply.

The Government’s reform package comes after news that Google is likely to face class action litigation in Australia by publishers, brought by Maurice Blackburn, in relation to alleged misuse of market power in the ad tech stack. Google has faced similar actions around the world including in the USA, Canada and the UK. 

Maurice Blackburn principal lawyer Miranda Nagy – who is leading the investigations into the potential class action against Google – said: “Robust competition laws combined with a strong class actions regime are crucial in promoting better corporate behaviour among the tech giants.

“The current laws we have are not fit-for-purpose for the digital economy. A raft of regulatory investigations and evidence that has emerged from overseas litigation indicates that there is a sound basis for concern about Google’s conduct in relation to the display ads served in their millions to Australians using the internet and apps every day.

“Publishers, large and small, rely on advertising revenue to keep the news flowing across our country, and our class action aims to obtain compensation for publishers who have lost revenue because of the absence of real competition in ad tech.

“Going forward, we welcome the Albanese Government’s proposals to protect Australian consumers and businesses from anti-competitive conduct in our digital economy. There is a real need and opportunity to ensure that these proposed new laws add another layer of genuine protection for consumers and businesses, and to help stamp out anti-competitive behaviour.”

Maurice Blackburn’s proposed class action in relation to ad tech comes after acting on behalf of app developers in misuse of market power claims against Apple and Google, in class action proceedings which went to a first-stage trial earlier this year.  

Media enquires:

Chee Chee Leung at Maurice Blackburn Lawyers 0412 560 584 or cleung@mauriceblackburn.com.au