The Australian Competition and Consumer Commission (ACCC) has released an update ahead of its final report on the Digital Platform Services Inquiry due in March next year, outlining its intentions to investigate potential competition issues relating to generative artificial intelligence (AI).

ACCC Chair, Gina Cass-Gottlieb, said the report will cover new developments in digital platform markets, discover emerging issues, and examine key developments in international markets – including the European Union, Germany, India, South Korea, Japan and the UK – as well as their impact on consumers and competition.

“The report will be a chance to take a global view and see what challenges and opportunities exist worldwide. The ACCC’s work on digital platforms over the past five years has already led to changes in our economy and to benefits for consumers. But Australia can learn and benefit from developments elsewhere,” she said.

“We are now asking consumers, business owners and others to share their views on the issues we outline so that they can help shape the final report.

“We recognise that in many cases international legislation is only recently enacted so the full impact may not be clear. But many jurisdictions have matched our ambition in finding a balance between competition in the digital marketplace and protecting consumers.”

The issues paper update also confirmed the ACCC’s proposal to investigate the generative AI market and potential issues impacting competition, including the “high barriers to entry in the market and the potential for large digital platforms to strengthen and expand their market power through the integration of Large Language Models (LLMs)”.

“We are following recent developments in generative AI closely. Adoption has been extensive, and this technology continues to expand and develop at a rapid pace. Generative AI products and services may present new opportunities, but also new challenges with major implications for our work,” Cass-Gottlieb said.

Also as a member of the Digital Platform Regulators Forum (DP-REG), the ACCC, along with the Australian Communications and Media Authority (ACMA), the eSafety Commissioner (eSafety) and the Office of the Australian Information Commissioner (OAIC), confirmed it had been “closely considering interactions between AI services and competition and consumer regulation” during a year of “unprecedented uptake in the use of AI tools”.

At a meeting in July, senior representatives of the four member regulators, Cass-Gottlieb, Creina Chapman (Acting Chair, ACMA), Julie Inman Grant (eSafety Commissioner, eSafety) and Carly Kind (Australian Privacy Commissioner, OAIC), committed to three overarching strategic priorities for 2024 to 2026 including to build capacity, to promote regulatory coherence and to respond to emerging risks and opportunities.

“[AI] technology has serious implications for our work; from potentially generating misleading advertising, scams, and fake reviews, to enabling the possible use of AI to engage in anti-competitive conduct. The ACCC is clear on the need to ensure healthy competition in markets affected by AI. By working with our partners in DP‑REG, the ACCC is helping to shape how Australia can tackle both the risks and opportunities in a safe and responsible way amid a shifting digital landscape,” Cass-Gottlieb said.

“Over the last 12 months DP-REG has made important contributions to public discourse about evolving developments in digital technologies and services. We look forward to working together over the next year to further promote coordinated and effective regulatory responses to the impact of digital platforms on the Australian community,” Chapman said.

“The Digital Platform Regulators Forum (DP-REG) has established itself as a critical mechanism for achieving regulatory consistency, clarity and collaboration as technologies continue to evolve. By enhancing our capacity, promoting regulatory coherence, and addressing emerging risks, we aim to encourage a digital environment that is innovative, safe, and fair for all Australians,” Inman Grant said.

“Just as a joined-up approach by regulators delivers efficiency and effectiveness for the regulated community, the same approach is vital in sharing information and expertise through DP-REG members to prepare for the emerging issues of tomorrow,” Kind said.