The ACCC published a preliminary report of its inquiry on digital platforms, which is not yet complete.
Background: Under direction of the Federal Government, the Australian Competition and Consumer Commission (ACCC) started an inquiry on digital platforms in December 2017, to examine their impact on Australian media and advertising markets and assess the level of competition.
What’s new? As expected, the ACCC has now issued its preliminary report – a 378-pages read, with 11 recommendations for action and nine areas for further analysis. The report finds Google and Facebook each to have ‘substantial market power’ in three markets, and outlines concerns regarding the extent to which consumers’ data is collected and used to enable targeted advertising. Recommendations include stronger regulatory oversight on platforms, new ways to fund quality news content (such as tax incentives) and the introduction of stronger privacy safeguards in the Privacy Act.
Why does it matter? The report is not final, and the finding of ‘substantial market power’ is not automatically conducive to remedies. However, the comprehensive report shows how platform regulation starts to take a better-defined shape.
Next steps: The ACCC may hold further stakeholder forums in early 2019, and must provide a final report by 3 June 2019, which is likely to shape future regulatory action.
