Notice of Inquiry into digital platforms

Overview

The Competition and Consumer Act 2010 was enacted to regulate and promote competition within the Australian market, ensuring fair trading practices and consumer protection. The Act, overseen by the Parliament of Australia, aims to prevent anti-competitive behaviour, maintain fair market conditions, and safeguard consumer rights. In response to emerging concerns about the influence of digital platforms on media and advertising markets, the Treasurer issued a notice on 4 December 2017, mandating the Australian Competition and Consumer Commission (ACCC) to conduct an inquiry into the impact of digital search engines, social media platforms, and other digital content aggregation platforms on competition, particularly concerning the supply of news and journalistic content. The objective of this Inquiry is to assess the market power exercised by these platforms, their effect on the quality and variety of news content for consumers, and the broader implications for media content creators, advertisers, and consumers. This inquiry underscores the government's commitment to addressing market dynamics in the digital era and ensuring a balanced competitive landscape.

Scope and Application

The Australian Competition and Consumer Commission (ACCC) has been mandated by the Treasurer to conduct an Inquiry into the impact of digital platforms, including search engines and social media, on competition in media and advertising services markets. This Inquiry, which is in accordance with subsection 95H(1) of the Competition and Consumer Act 2010, is not targeted at any specific individuals or entities but rather seeks to examine the broader effects of digital platform service providers on the market dynamics, particularly concerning the supply of news and journalistic content. The scope of the Inquiry encompasses the exercise of market power by these platforms in their dealings with content creators and advertisers, the influence on consumer choice and content quality, and the broader implications of information asymmetry on competition within these markets. The ACCC has the authority to convene public hearings as part of this Inquiry, with details regarding such events to be published on their official website. This Inquiry extends to the entire Commonwealth of Australia and does not specify any exclusions or exemptions within its mandate, aiming to gather comprehensive insights into the competitive landscape influenced by digital platforms.

Key Provisions

The notice issued by the Treasurer under subsection 95H(1) of the Competition and Consumer Act 2010 (Cth) mandates the Australian Competition and Consumer Commission (ACCC) to conduct an Inquiry into the influence of digital platforms such as search engines and social media on competition within media and advertising markets (C2017G01402 (Gazette)). The key provisions of this Inquiry, as outlined in the notice, include examining the market power exercised by platform service providers, the quality and variety of news and journalistic content accessible to consumers, the overall impact on media and advertising markets, and the effects of long-term trends such as technological advancements on competition. Additionally, the Inquiry will delve into how information asymmetry affects competition among platform service providers, advertisers, and consumers. The ACCC, as the governing body for this Inquiry, has specific obligations to ensure its thorough and comprehensive execution. Firstly, the ACCC must diligently gather and analyse data relevant to the Inquiry's focus areas. This involves assessing the market power dynamics between digital platforms and content creators or advertisers, the quality and diversity of news and journalistic content available to the public, and the broader implications for media and advertising markets. The ACCC is also tasked with examining the influence of technological and innovation trends on these markets. Furthermore, the ACCC can choose to hold public hearings, the details of which will be published on their official website, to facilitate broader stakeholder engagement and gather diverse perspectives. In the event of non-compliance with the requirements set forth by the Treasurer or failure to adhere to the obligations of the ACCC, the implications can be significant. While the notice does not explicitly outline specific penalties or legal consequences for breaches, it is implicit that failure to conduct the Inquiry as mandated or to submit the final report could lead to legal ramifications under the Competition and Consumer Act 2010. Additionally, any failure to accurately represent market conditions or mislead stakeholders during the Inquiry could result in civil or criminal liability for the ACCC or any involved parties, potentially leading to fines or other corrective actions. The gravity of these consequences underscores the importance of the ACCC's diligent and transparent approach to the Inquiry.