The Australian Competition and Consumer Commission (ACCC) is intensifying its efforts to compel the Albanese government to enact long-awaited legislation that would force Apple and Google to open their app stores to rival platforms and alternative payment systems. This move aims to foster a more competitive environment, mirroring the changes in Europe where new rules have already led to the emergence of several competing app stores and greater choice for developers and consumers.
Under the current system, Apple and Google restrict third-party app stores and often mandate the use of their in-house payment systems, which can charge up to 30% commissions. In contrast, Epic Games, which operates its own store overseas, charges no commission on the first $1 million in revenue and only 12% above that threshold.
ACCC chair Gina Cass-Gottlieb emphasized the potential economic benefits, citing the positive impact seen in jurisdictions that have implemented similar changes. She highlighted how such reforms can make a significant difference in the market.
The push for these reforms has gained support from the Australian Banking Association, with CEO Simon Birmingham advocating for Australia to follow Europe's lead in 'leveling the playing field'.
The ACCC first raised concerns about app store competition in 2021 and has drafted rules to force Apple and Google to open their platforms and ban 'anti-steering' provisions that prevent developers from directing users to cheaper payment options. However, the government has yet to pass the enabling legislation.
Apple and Google defend their restrictions as necessary for privacy and security. The issue has also been a subject of legal battles, with the Federal Court ruling last year that the companies' dominance in the app market likely results in higher commissions than an open market would allow, based on a case brought by Epic Games.
While the government has shown a willingness to challenge big tech on various issues, any move against US tech giants could potentially lead to diplomatic friction with Washington. This delicate balance between competition and cooperation is a key consideration in the ongoing debate over app store regulations.
