The Australian government is preparing to extend its regulatory reach well beyond social media companies, signaling that app stores, search engines, and artificial intelligence platforms could soon face stringent new competition rules. The move represents one of the most aggressive postures any Western democracy has taken toward the handful of technology giants that dominate how consumers discover, access, and pay for digital services.
Australian Treasurer Jim Chalmers announced the government’s intentions as part of a broader digital competition framework that could reshape how companies like Apple, Google, Meta, and Microsoft operate in the country. The announcement follows years of tension between Canberra and Silicon Valley, dating back to Australia’s landmark News Media Bargaining Code in 2021, which forced tech platforms to negotiate payments to news publishers.
Canberra’s New Regulatory Blueprint Targets Digital Gatekeepers
According to MSN, the Australian government is considering designating certain digital platforms as holding “strategic market status,” a classification that would subject them to heightened regulatory obligations. The framework draws inspiration from similar efforts in the European Union, where the Digital Markets Act has already imposed new requirements on so-called gatekeepers — companies whose platforms serve as essential intermediaries between businesses and consumers.
Treasurer Chalmers said the government would consult on whether to grant the Australian Competition and Consumer Commission (ACCC) new powers to impose codes of conduct on designated platforms. “We want to make sure that competition policy keeps pace with changes in technology,” Chalmers stated. The consultation process is expected to examine how market power is exercised across app distribution, search, digital advertising, and increasingly, AI-powered services that are rapidly becoming primary interfaces for information discovery.
App Stores and the 30% Commission Under the Microscope
Apple and Google’s app store duopoly has long drawn scrutiny from regulators around the world. Both companies typically charge commissions of up to 30% on in-app purchases and subscriptions — fees that app developers have argued stifle competition and inflate consumer prices. Australia’s proposed framework could empower regulators to address these concerns directly, potentially mandating interoperability, requiring platforms to allow third-party app stores, or capping commission rates.
The ACCC has been studying digital platform markets since 2017, when it launched its Digital Platforms Inquiry. That initial investigation led to the creation of a dedicated Digital Platform Services branch within the commission, which has since published multiple interim reports examining issues ranging from app marketplaces to the market power of search engines. In its most recent reports, the ACCC has flagged concerns about self-preferencing — the practice by which platform operators favor their own products and services over those of competitors.
Search Engines Face New Accountability as AI Reshapes Information Access
Google’s dominance in search has been a persistent concern for competition authorities globally. In the United States, a federal judge ruled in 2024 that Google had maintained an illegal monopoly in the search market, a decision that could lead to structural remedies including a potential breakup of the company’s search business. Australia appears to be watching these developments closely and is positioning itself to act independently if needed.
The rise of AI-powered search tools — including Google’s own AI Overviews, Microsoft’s Copilot integration into Bing, and standalone products like OpenAI’s ChatGPT — adds a new dimension to the regulatory challenge. These tools synthesize information from across the web, often without directing users to the original sources. Australian regulators have expressed concern that AI-driven search could further concentrate market power by reducing the visibility of independent websites and smaller competitors. The proposed framework would give the ACCC authority to examine how AI systems affect competition in information markets and whether new obligations are needed to ensure fair access.
The EU Precedent and How Australia’s Approach Differs
Australia’s proposed approach shares DNA with the European Union’s Digital Markets Act (DMA), which took full effect in March 2024. Under the DMA, the European Commission designated six companies — Alphabet, Amazon, Apple, ByteDance, Meta, and Microsoft — as gatekeepers, subjecting them to a series of obligations including allowing third-party app stores on their devices and prohibiting self-preferencing in search results.
However, Australian officials have suggested their framework may differ in important ways. Rather than creating a blanket set of rules that apply to all designated platforms equally, Australia is considering a more tailored approach in which the ACCC would develop specific codes of conduct for individual platforms based on the particular competition concerns identified in each market. This would give regulators flexibility to address the unique dynamics of, say, Apple’s App Store differently from Google’s search advertising business.
Industry Pushback and the Innovation Argument
Technology companies have historically argued that heavy-handed regulation risks stifling innovation and harming consumers. Apple has maintained that its App Store commission structure funds the security reviews, developer tools, and distribution infrastructure that make the platform valuable to both developers and users. Google has argued that its search algorithms are designed to deliver the most relevant results to users and that any regulatory intervention could degrade the quality of the search experience.
Industry groups in Australia have echoed these concerns. The Digital Industry Group Inc. (DIGI), which represents major tech companies operating in Australia, has called for any new regulatory framework to be evidence-based and proportionate. The group has warned that overly prescriptive rules could deter investment in the Australian market and put the country at a disadvantage relative to other jurisdictions that take a lighter regulatory touch.
AI Regulation Looms as the Next Frontier
Perhaps the most consequential element of Australia’s proposed framework is its explicit inclusion of AI platforms. While much of the global regulatory conversation around artificial intelligence has focused on safety, bias, and misinformation, Australia appears to be among the first countries to frame AI regulation primarily through the lens of competition policy.
The concern is that a small number of companies — primarily Google, Microsoft, Meta, and Amazon — control the cloud computing infrastructure, the foundational AI models, and the consumer-facing applications that together constitute the AI value chain. If these companies are allowed to extend their existing market power into AI without regulatory oversight, the argument goes, the competitive dynamics that already plague search and app distribution will simply replicate themselves in a new technological context. Treasurer Chalmers acknowledged this risk, noting that the government wants to ensure that the benefits of AI are “shared broadly” rather than captured by a few dominant firms.
What Comes Next for Australian Digital Policy
The government has indicated that formal consultation on the proposed framework will begin in the coming months, with legislation potentially introduced to Parliament in 2025 or 2026. The ACCC is expected to play a central role in shaping the final framework, drawing on its extensive body of research into digital platform markets.
Australia’s approach is being closely watched by other countries in the Asia-Pacific region, including Japan, South Korea, and India, all of which are grappling with similar questions about how to regulate dominant technology platforms. If Canberra succeeds in implementing a workable framework, it could serve as a template for other mid-sized economies seeking to assert regulatory authority over global tech companies without the market size advantages enjoyed by the United States or the European Union.
The stakes are high — not just for the technology companies that stand to be regulated, but for the millions of Australian consumers and businesses that depend on these platforms every day. Getting the balance right between promoting competition and preserving the benefits of digital innovation will require careful calibration, extensive consultation, and a willingness to adapt as the technology itself continues to evolve at a rapid pace.
Australia Takes Aim at App Stores, Search Engines, and AI Platforms in Sweeping New Digital Competition Overhaul first appeared on Web and IT News.