Overview

The Competition and Consumer (Price Inquiry–Digital Platforms) Direction 2020 was introduced by the Treasurer under section 95H of the Competition and Consumer Act 2010. This legislative instrument directs the Australian Competition and Consumer Commission (ACCC) to conduct a price inquiry into the markets for the supply of digital platform services. The purpose of this inquiry is to promote competition and ensure good consumer outcomes in the digital platform services market, with a focus on understanding the factors that influence prices. The ACCC has been tasked with investigating digital advertising services and data collection, storage, supply, processing, and analysis services provided by digital platform service providers and data brokers. The inquiry is intended to support the government's commitment to proactively investigating and monitoring the digital platform services market. The ACCC is required to provide interim reports every six months and a final report by 31 March 2025, with the understanding that interim reports cannot be released to the public without the Treasurer's written authorisation.

Scope and Application

The Competition and Consumer (Price Inquiry–Digital Platforms) Direction 2020 applies to the Australian Competition and Consumer Commission (ACCC), which is required to conduct a price inquiry into the markets for the supply of digital platform services. The Direction mandates the ACCC to investigate and monitor various factors influencing prices within these markets, including digital advertising services and data collection, storage, supply, processing, and analysis services provided by digital platform service providers or data brokers. The inquiry is intended to support the government’s commitment to promoting competition and good consumer outcomes in these markets. The Direction does not explicitly outline exclusions or exemptions, but it specifies the geographic reach as national, focusing on the markets for the supply of digital platform services within Australia. The Direction extends its application through subordinate instruments, such as the terms of reference for the inquiry and the requirement for the ACCC to provide interim and final reports to the Treasurer.

Key Provisions

The Competition and Consumer (Price Inquiry–Digital Platforms) Direction 2020, made under section 95H of the Competition and Consumer Act 2010, mandates the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into the markets for the supply of digital platform services (sections 1 and 2). This inquiry aims to promote competition and improve consumer outcomes in these markets, with a focus on examining factors influencing the prices of digital platform services. The ACCC is required to investigate digital advertising services provided by digital platform service providers and data collection, storage, supply, processing, and analysis services offered by these providers or data brokers (section 3). Additionally, the ACCC must regularly monitor the markets, considering aspects such as competition intensity, market trends, innovation, technological changes, and overseas market developments (section 3). The Direction outlines specific obligations for the ACCC. It mandates the ACCC to submit an interim report to the Treasurer by 30 September 2020, followed by subsequent reports every six months detailing observed changes and other relevant matters (section 4). The final report is due by no later than 31 March 2025. Importantly, the ACCC is prohibited from releasing any interim report for public inspection until authorised by the Treasurer in writing (section 4). This ensures controlled dissemination of interim findings while maintaining the integrity of the ongoing inquiry process. Breach of the obligations set forth in the Direction could lead to various consequences. Although the Direction itself does not explicitly outline penalties for non-compliance, failure to adhere to the Minister’s direction or the terms of reference could potentially result in legal action or other administrative consequences under the Competition and Consumer Act 2010. Additionally, the ACCC’s failure to produce timely and accurate reports could impact the effectiveness of the inquiry and the government’s ability to implement informed policies. However, the specific legal ramifications of non-compliance would depend on the broader legislative context and any relevant judicial interpretations.