The Australian Competition and Consumer Commission (ACCC) reports that it is concerned with the large amount and variety of data which digital platforms such as Google and Facebook collect on Australian consumers, which go beyond the data which users actively provide when using the digital platform. Research commissioned as part of the inquiry indicates consumers are concerned about the extent and range of information collected by digital platforms, the Commission added. The ACCC is in particular concerned about the length, complexity and ambiguity of online terms of service and privacy policies, including click-wrap agreements with take-it-or-leave-it terms.
The report found that key digital platforms, Google and Facebook, had both the ability and incentive to favour related businesses or those businesses with which they may have an existing commercial relationship. The platforms’ algorithms rank and display advertising and news content in a way that lacks transparency to advertisers and news organizations, the ACCC also said.
"The ACCC considers that the strong market position of digital platforms like Google and Facebook justifies a greater level of regulatory oversight”, said ACCC chair Rod Sims. “Australian law does not prohibit a business from possessing significant market power or using its efficiencies or skills to ‘out compete’ its rivals. But when their dominant position is at risk of creating competitive or consumer harm, governments should stay ahead of the game and act to protect consumers and businesses through regulation," Sims added.
Browser, search choice
The report makes preliminary recommendations aiming to address Google and Facebook’s market power and promote increased consumer choice, including a proposal that would prevent Google’s internet browser Chrome being installed as a default browser on mobile devices, computers and tablets and Google’s search engine being installed as a default search engine on internet browsers.
The ACCC also proposes that a new or existing regulatory authority be given the task of investigating, monitoring and reporting on how large digital platforms rank and display advertisements and news content. Other preliminary recommendations suggest ways to strengthen merger laws.
Additional preliminary recommendations deal with copyright, and take-down orders, and the review of existing, disparate media regulations. The ACCC also notes that consumers will be better off if they can make informed and genuine choices as to how digital platforms collect and use their data, and proposes changes to the Privacy Act to enable consumers to make informed decisions.
Digital code of practice on data collection
The ACCC is further considering a recommendation for a specific code of practice for digital platforms’ data collection to better inform consumers and improve their bargaining power.
The ACCC is seeking feedback on its preliminary recommendations, and the eight proposed areas for further analysis and assessment. These eight areas for further analysis include the proposed ‘badging’ by digital platforms of media content, produced by an accountable media business, as well as options to fund the production of news and journalism, such as tax deductions or subsidies, a digital platforms ombudsman to investigate complaints and provide a timely and cost effective means to resolve disputes, and a proposal for digital platforms to allow consumers to opt out of targeted advertising.
