Australia starts inquiry into Facebook, Google impact on media, ad markets

The Federal Government has formally directed the Australian Competition and Consumer Commission (ACCC) to start an inquiry into digital platform providers such as Facebook and Google. The ACCC’s inquiry will look at the effect that digital search engines, social media platforms and other digital content aggregation platforms are having on competition in media and advertising services markets.

"The ACCC goes into this inquiry with an open mind to and will study how digital platforms such as Facebook and Google operate to fully understand their influence in Australia," said ACCC Chairman Rod Sims. "We will examine whether platforms are exercising market power in commercial dealings to the detriment of consumers, media content creators and advertisers." 

The ACCC plans to look closely at longer-term trends and the effect of technological change on competition in media and advertising. The Commission will also consider the impact of information asymmetry between digital platform providers and advertisers and consumers. 

"We are keen to hear the views of content creators, mainstream media outlets and smaller media operators, platform providers, advertisers, journalists, consumers and small business interest groups," Sims added. The ACCC is expected to produce a preliminary report by early December 2018, with a final report due early June 2019.