The Australian Competition and Consumer Commission (ACCC) in its latest report for the Digital Platform Services Inquiry raised concerns that expansion of these platforms has increased the risk of them engaging in harmful behaviour, such as invasive data collection and practices that lock in customers and limit their choices.
The regulator said digital platforms with significant market power can use practices like the bundling of products, and pre-installation and default settings to limit customer choice or deter innovation from competitors.
Earlier this year, ACCC said it would probe the country's fast-evolving ecosystem of digital platform service providers as part of a five-year inquiry into the sector.