Australia Considers AI App Store Crackdown
Australia's government has indicated it may target app stores and search engines in a new wave of AI-era regulation. The move signals rising global regulatory risk for tech platforms and startups, emphasizing the need for flexible and compliant product stacks.
The recent move by Australia's internet regulator, eSafety, is part of a broader push for online safety that will come into effect on March 9. This initiative will require internet services, including AI chatbots, to prevent users under 18 from accessing harmful content such as pornography and material depicting extreme violence or self-harm. Companies that fail to comply could face substantial fines of up to A$49.5 million (US$33 million). This directive is built upon Australia's existing Online Safety Act, utilizing legally enforceable industry codes rather than creating a separate AI-specific law. The codes for services that include AI chatbots were registered in September 2025 and will be enforced from the March 9 deadline. A review of the 50 most popular text-based AI products revealed that a majority had not yet implemented any public measures to comply with the upcoming age verification rules. The Australian Competition and Consumer Commission (ACCC) has been a key player in advocating for stronger regulation of digital platforms. Its five-year Digital Platform Services Inquiry, which concluded in June 2025, highlighted the need for reforms to address harms and promote competition in the digital economy. The ACCC has expressed concerns that major tech companies could leverage their market power in areas like cloud computing to stifle competition in the developing AI sector. In December 2025, the Australian government released its National AI Plan, signaling a shift in its regulatory approach. Instead of creating "mandatory guardrails" for high-risk AI, the government now intends to rely on and adapt existing legal frameworks to manage AI-related risks. This strategy is complemented by the establishment of a National AI Centre to coordinate efforts across various sectors. The government aims to foster investment and innovation while ensuring the technology's benefits are widely shared and Australians are kept safe.
