Australia Cracks Down on Big Tech: New Law Threatens Multi-Million Fines

Australia is proposing a new law that could fine global tech companies up to A$50 million for practices suppressing competition. The law, part of a broader initiative to manage Big Tech's influence, aims to empower the competition regulator and may align with the EU's Digital Markets Act.

Australia's government announced on Monday a proposed legislation that could impose fines of up to A$50 million ($33 million) on global technology giants. These penalties would apply if companies engage in practices that suppress competition and restrict consumers from switching services.

Assistant Treasurer Stephen Jones revealed the plan in a speech at the McKell Institute, stating that the law seeks to address the challenges posed by digital economies. The proposal empowers the competition regulator to oversee compliance and investigate anti-competitive practices online.

Tech leaders like Apple, Google, and Meta, which dominate digital services in Australia, have yet to comment. A consultation period on this proposal will end in February, and the law aims to mirror aspects of the EU's Digital Markets Act to enhance consumer choice and competition.

(With inputs from agencies.)