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# Australia Digital Platform Services Act: Compliance Obligations for Hardware Ecosystems

The Treasury Laws Amendment (Digital Platform Services) Act 2022 gives the ACCC powers to designate app marketplaces, search engines, and social media services for mandatory conduct codes — with penalties reaching AUD $10 million or 10% of Australian annual turnover. While designed with Apple and Google in mind, the Act's definition of app marketplace is broad enough to capture smart TV platforms, wearable ecosystems, and IoT distribution channels operated by hardware OEMs. This guide explains the designation framework, what obligations follow, and how to build a compliance posture before codes are finalised.

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At a glance

Legislation

Treasury Laws Amendment (Digital Platform Services) Act 2022

Amends

Competition and Consumer Act 2010 (Part IVB)

Enforcer

ACCC Digital Platforms Branch

Reporting threshold

AUD $1B global annual revenue

Maximum civil penalty

AUD $10M or 10% Australian annual turnover

## Key concepts in the Digital Platform Services Act framework

### The Digital Platform Services Act 2022: What It Does

The Treasury Laws Amendment (Digital Platform Services) Act 2022 amends the Competition and Consumer Act 2010 (Cth) to establish a new regulatory framework for digital platform services in Australia. The Act inserts a new Part IVB into the CCA, creating a tiered regime: mandatory codes of conduct ("service-specific codes") for designated services, basic online safety expectations enforced separately, and a news media bargaining framework that already applied since 2021. The Act gives the ACCC broad powers to designate specific digital platform services provided by specific corporations, to develop and enforce mandatory codes, and to impose significant civil penalties for non-compliance. The framework is explicitly modelled on the EU Digital Markets Act approach — identifying gatekeepers whose market position warrants behavioural obligations — but uses designation-by-service rather than a single gatekeeper threshold.

### Designated Services: App Marketplaces, Search, Social, and More

The Digital Platform Services Act defines seven categories of digital platform services that can be designated: app marketplaces, search engine services, social media services, relevant digital platform services (a catch-all), content aggregation services, messaging services, and online private messaging services. App marketplaces are the most directly relevant to hardware OEMs — the Act's explanatory memorandum explicitly references Apple App Store and Google Play as the archetypal app marketplace services. Once a service is designated by the Minister on ACCC recommendation, the designated provider must comply with any mandatory code developed for that service type. Designation is service-specific and company-specific, not sector-wide, meaning the ACCC must affirmatively recommend designation for each specific platform.

### How Connected Device OEMs May Be Captured

Hardware manufacturers who operate a proprietary app marketplace — a platform through which developers distribute apps to device users — may fall within the Act's definition of an app marketplace service provider. Smart TV platforms with dedicated app stores, wearable device ecosystems with companion app distribution platforms, IoT hub manufacturers distributing firmware and integrations through a controlled store, and automotive infotainment systems with app installation controls are all plausible candidates. The designation threshold under the Act considers global revenue (AUD $1 billion or more triggers mandatory annual reporting), Australian user numbers, and whether the service plays a significant role in facilitating commercial transactions between businesses and consumers. OEMs with sub-threshold ecosystems are not currently at risk of designation but should monitor ACCC consultation papers on sector scope.

### Mandatory Codes and Interoperability Obligations

Once a service is designated, the ACCC can develop a mandatory service-specific code after public consultation. Codes can impose obligations including: non-discriminatory access to platform APIs, interoperability with competing platforms, data portability for app developers and users, prohibition on self-preferencing, transparent app review and rejection processes, and dispute resolution mechanisms. Interoperability codes, which the ACCC commenced scoping in 2023, represent the highest-impact obligation for hardware ecosystems — requiring that connected devices expose standardised APIs enabling third-party app stores, voice assistants, or payment systems to operate alongside the OEM's own services. This mirrors the EU Digital Markets Act Article 6 interoperability requirements that Apple, Google, and Meta faced from March 2024.

### Mandatory Reporting for Large Platforms

Under Schedule 5 of the Digital Platform Services Act, digital platform services meeting a revenue threshold — annual global revenue of AUD $1 billion or more — must submit annual reports to the ACCC covering Australian user numbers, revenue derived from Australian users, and information about the design and operation of the service. This mandatory reporting commenced in 2022 for the largest platforms. For hardware OEMs, the reporting obligation applies to the digital platform service (the app marketplace or related service), not the hardware business as a whole — meaning an OEM whose device platform generates significant Australian revenue may face reporting obligations even if the hardware sales alone would not cross any threshold. Reports are assessed by the ACCC Digital Platforms Branch.

### Penalties, Enforcement, and Class Action Exposure

Civil penalties for non-compliance with mandatory codes or reporting requirements under the Digital Platform Services Act can reach AUD $10 million per contravention, or 10% of the corporation's Australian annual turnover if that amount is higher. The ACCC Digital Platforms Branch, established specifically to oversee this regime, has powers to investigate, issue infringement notices, seek injunctions, and commence Federal Court proceedings. Beyond ACCC enforcement, conduct by designated platforms that harms app developers or users may also constitute a breach of the Australian Consumer Law (ACL) — enabling private class actions. The combination of high civil penalties, ACCC investigative focus, and private litigation exposure makes the Digital Platform Services Act one of the most significant compliance risks for large digital platform operators in Australia.

## How to build a compliance posture for your hardware ecosystem

01

Assess whether your connected device app ecosystem meets the designation indicators under the Digital Platform Services Act. Key indicators include: operating an app marketplace through which third-party developers distribute software to your device users; generating AUD $1 billion or more in global annual revenue across your group; serving a significant number of Australian users; and playing a role in facilitating commercial transactions between developers and consumers. If any of these apply, legal review is warranted before assuming your ecosystem is out of scope.

02

Review the ACCC's Digital Platform Services Inquiry Final Report (March 2022) and the five interim reports that preceded it. These documents define the ACCC's analytical framework, explain how it characterises app marketplace market power, and identify which behaviours the ACCC considers most harmful. The Final Report's recommendations directly shaped the Act's legislative design and the ACCC's ongoing work program — reading them gives you a clear map of regulatory risk.

03

Monitor ACCC rulemaking and consultation for mandatory codes applicable to app marketplace services. The ACCC commenced interoperability code scoping in 2023. Industry submissions during consultation periods are your primary opportunity to shape code requirements before they are finalised. Engage your legal and policy team to prepare substantive submissions — codes are not announced with long lead times, and consultation windows are typically 4–8 weeks.

04

Establish an interoperability roadmap if you are pre-emptively preparing for potential app marketplace obligations. Identify which proprietary APIs underpin your app distribution, in-app payment, user authentication, and device hardware access. Assess the technical feasibility and security implications of exposing these APIs to third parties under standardised protocols. Document this assessment — a credible, auditable interoperability plan is evidence of good faith if the ACCC designates your service and negotiations over code content begin.

05

Implement transparent app store policies consistent with Australian Consumer Law fairness obligations, regardless of whether your service is formally designated. The ACL prohibits unconscionable conduct (s21), misleading or deceptive conduct (s18), and unfair contract terms (Part 2-3). App review processes that are opaque, inconsistently applied, or appear to discriminate against competing apps create genuine ACL exposure for OEMs of all sizes — not just those above designation thresholds. Document your review criteria, communicate rejection reasons to developers, and maintain consistent application of your policies.

06

Create a dispute resolution mechanism for app developers who are rejected, suspended, or removed from your platform. The ACCC's Final Report identified the absence of effective developer dispute resolution as one of the most significant harms in app marketplace ecosystems. A mandatory dispute resolution scheme is a probable element of any future app marketplace code. Building one proactively — with clear grounds for review, defined timelines, and an independent reviewer for escalated disputes — reduces both regulatory risk and developer-relations friction.

07

Engage with ACCC consultation processes on sector-specific codes and designation decisions. The ACCC's Digital Platforms Branch holds regular stakeholder roundtables and issues consultation papers before recommending designations. Participation — whether through direct submissions, industry associations, or coalitions — is the most effective way to ensure your operational reality is understood by the regulator before obligations are set. Companies that engage substantively in consultation typically face more workable final code requirements than those that engage only after a code is drafted.

## Frequently asked questions

### Does the Digital Platform Services Act apply to hardware manufacturers with app stores?

Potentially yes, depending on the scale and nature of the app distribution platform. The Act's definition of 'app marketplace service' covers platforms that enable users of a device or operating system to discover, download, or purchase software applications. A smart TV platform, wearable device app store, or IoT hub software distribution platform could fall within this definition if it meets the designation indicators — particularly AUD $1 billion or more in global group revenue, significant Australian user numbers, and a role in facilitating commercial transactions between developers and consumers. The ACCC must affirmatively recommend designation for a specific service, and designation is not automatic, but OEMs with large ecosystems should not assume they are outside scope.

### What are the designation thresholds under the Digital Platform Services Act?

The Act does not set a single numerical threshold for designation. Instead, the Minister can designate a specific digital platform service on the ACCC's recommendation based on a set of factors: the number of Australian users; the revenue derived from Australian operations; the service's role in facilitating commercial activity; and whether the service has significant market power. For mandatory annual reporting obligations specifically, the Act uses a AUD $1 billion global revenue threshold — platforms above this must report annually to the ACCC. Below this threshold, a service can still be designated for code obligations if the ACCC determines the designation criteria are met. This asymmetry means reporting obligations and code obligations have different thresholds.

### What penalties apply for non-compliance with the ACCC digital platform rules?

Civil penalties for breaching a mandatory code obligation or a reporting requirement under the Digital Platform Services Act can reach AUD $10 million per contravention, or 10% of the company's annual Australian turnover for the relevant period if that is higher than AUD $10 million. The ACCC can also seek injunctions to restrain ongoing non-compliance, and pecuniary penalties can be imposed per day of continuing contravention. In addition to ACCC enforcement, conduct that also constitutes a breach of the Australian Consumer Law — for example, misleading or deceptive conduct in app store policies — can expose companies to class action litigation from affected developers or users under ACL s236 damages provisions.

### What interoperability obligations are expected under the Digital Platform Services Act?

Specific interoperability obligations have not yet been finalised in any mandatory code, as of 2024. However, the ACCC's Digital Platform Services Inquiry Final Report and interim reports identified interoperability as a priority concern — specifically, the ability of third-party app stores, payment systems, and voice assistants to operate on devices controlled by large platform operators. The ACCC commenced scoping of interoperability codes in 2023, informed by the EU Digital Markets Act's interoperability requirements under Article 6 that took effect in March 2024. Expected obligations include: access to device hardware APIs on non-discriminatory terms, support for third-party default app settings, and data portability for app developers. Final code requirements will emerge through the ACCC's public consultation process.

**Disclaimer:** Educational resource only. Regulatory requirements change. Consult a qualified compliance specialist before making decisions.

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