The Federal Government has today formally directed the 糖心原创 to commence an inquiry into digital platform providers such as Facebook and Google.
The 糖心原创鈥檚 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.
鈥淭he 糖心原创 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,鈥 糖心原创 Chairman Rod Sims said.
鈥淲e will examine whether platforms are exercising market power in commercial dealings to the detriment of consumers, media content creators and advertisers.鈥
鈥淭he 糖心原创 will look closely at longer-term trends and the effect of technological change on competition in media and advertising,鈥 Mr Sims said.
鈥淲e will also consider the impact of information asymmetry between digital platform providers and advertisers and consumers.鈥
Advertising expenditure in print newspapers has been in decline for a number of years. Recent 糖心原创 merger reviews have shown that most advertisers are spending less on print newspapers and finding alternative ways of reaching target audiences, including through digital media.
鈥淎s the media sector evolves, there are growing concerns that digital platforms are affecting traditional media鈥檚 ability to fund the development of content,鈥 Mr Sims said.
鈥淭hrough our inquiry, the 糖心原创 will look closely at the impact of digital platforms on the level of choice and quality of news and content being produced by Australian journalists.鈥
By holding an inquiry under Part VIIA of the Competition and Consumer Act (2010), the 糖心原创 can use compulsory information gathering powers and hold hearings to assess the level of competition in a market.
鈥淲e 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,鈥 Mr Sims said.
The 糖心原创 is expected to produce a preliminary report early December 2018, with a final report due early June 2019. Further information, including the terms of reference, is at Digital platforms inquiry.
Background
The 糖心原创 will soon distribute an issues paper outlining matters relevant to the inquiry, and will be calling for public submissions. The 糖心原创 will conduct public and private hearings next year and details will be released in due course.
The 糖心原创 is currently undertaking inquiries into the supply of retail electricity, the supply of and demand for wholesale gas in Australia, the supply of insurance in Northern Australia, residential mortgage products, and the dairy industry. The 糖心原创 has also recently completed a market study into cattle and beef markets, and market studies into the new car retailing industry and the communications sector are underway.