The Australian Competition and Consumer Commission (ACCC) is pressing the Albanese government to pass laws that would compel Apple and Google to permit rival app stores and alternative payment systems on their devices.
Proposed Reforms
- ACCC Chair Gina Cass-Gottlieb indicated these reforms would mirror changes implemented in Europe.
- New rules in Europe have led to the launch of several competing app stores, increasing choice for developers and consumers.
- Under existing conditions, Apple and Google largely block third-party app stores and often require developers to utilize their in-house payment systems, which can involve commissions up to 30%.
- Epic Games, which operates its own store overseas, applies no commission on the initial $1 million in revenue and 12% on amounts exceeding that threshold.
- Cass-Gottlieb suggested that potential savings from these changes would benefit the broader economy, given the extensive use of apps by both businesses and consumers.
Support and Background
- The Australian Banking Association has expressed support for the initiative, with CEO Simon Birmingham advocating for Australia to follow Europe's example to "level the playing field."
- The ACCC first identified concerns regarding app store competition in 2021.
- The commission has already drafted rules designed to open Apple and Google's platforms and ban "anti-steering" provisions that prevent developers from guiding users to less expensive payment options.
- Enabling legislation from the government is required to implement these rules.
Company Positions and Legal Context
- Apple and Google argue that their current restrictions are necessary for user privacy and security.
- Last year, the Federal Court ruled that the companies' dominant position in the app market likely resulted in higher commissions than would be present in a more open market. This finding was part of a case brought by Epic Games.
Government Considerations
- The Australian government has previously engaged with large technology companies on issues such as social media and news payments.
- However, any action taken against major US tech companies carries the potential for diplomatic friction with Washington.