The ACCC is seeking more input on digital advertising to complete its investigation.
Background: The Australian Competition and Consumer Commission launched its digital platforms inquiry at the end of 2017. In December 2018, it issued a preliminary report which found Google and Facebook to have ‘substantial market power’ in three markets and made regulatory and policy recommendations. The ACCC accepted submissions in response to the initial report until 15 February 2019.
What’s new? This week, the ACCC stated that the inquiry continues and needs more input from the digital advertising industry. Collectively, the amount charged by intermediaries is estimated to be between 30% and 75% of the final price paid for ads; the ACCC is exploring whether there is sufficient transparency around these transactions, and whether advertisers can verify whether the ads that they are purchasing are actually shown to their target audience.
Will this delay the end of the inquiry? Not for now: the final report remains scheduled for 3 June 2019. Both Google and Facebook deny that advertisements on their platforms are not verifiable; however, the ACCC chairman said “We have not yet reached a view as to whether the existing arrangements on the major digital platforms are sufficient to address the issue. This is an issue we hope to achieve clarity on before our final report in June”.
