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The Australian Competition and Consumer Commission (ACCC), in a digital platforms services inquiry interim report, said app developers should be allowed to provide customers with alternative payment options and data collected by Google and Apple should be kept separate from their other operations.
The ACCC also called for consumers to be allowed to change or remove pre-installed or default apps.
"We have identified a number of areas where action is required and have put forward potential measures to address areas of particular concern," ACCC Chair Rod Sims said.
"There is a window of opportunity for Apple and Google themselves to take steps to improve outcomes for app developers and consumers."