Australian Prime Minister unveils 'world-leading' regulation of tech giants
The federal government has announced "world-leading" changes to the regulation of tech giants, putting the companies on notice over their business models, treatment of users and dealings with traditional media outlets.
Responding to the Australian Competition and Consumer Commission's (ACCC) landmark digital platforms inquiry, the government committed to a series of reforms to address the tech giants' market power, boost transparency and ensure fair competition.
The competition and consumer watchdog will have a new dedicated unit, with enforcement powers, to investigate the activities of digital platforms. Under the direction of Treasurer Josh Frydenberg, the unit's first priority will be inquiring into the tech companies' advertising technology and algorithms.
The government committed to addressing concerns about the bargaining power imbalance between tech giants and media businesses, directing the ACCC to lead development of a code of conduct to ensure fair dealings between the companies. The government will step in with a mandatory intervention if it is not satisfied with progress made next year, warning the tech companies need to "do more" to be transparent about the impact of their operations.
Announcing the reform package on Thursday, Prime Minister Scott Morrison said the government wanted to protect consumers and competition with the "world-leading" reforms while ensuring Australia had a successful digital economy.
"I want us to be the model jurisdiction in the world for how we are dealing with digital platforms, social media platforms," he said. "And I have a simple rule: the rules that apply in the real world should apply in the digital world."
He said he wanted a "level playing field" for all companies.
"We have regulation and systems that were written for an analog economy and I want Australia to be one of the most, if not the most, successful digital economy in the world," he said.
Mr Frydenberg said the intent was "not only to minimise the harm but to maximise the opportunities" for the economy.
"The companies are on notice. The government is not messing around. We will not hesitate to act," he said.
As part of efforts to address the complex issue of harmonising regulation across old and new forms of media, the government will look at uniform classification rules and Australian content rules for streaming services.
Responding to the announcement, tech industry body DIGI said it recognised the importance of protecting consumer privacy and competition in the news media.
"We'll be studying the proposals in detail to ensure that the consumer protections are fit for a digital era, and that there are no unintended consequences for Australia's digital future, economic growth and global competitiveness," DIGI managing director Sunita Bose said.
She said modernised media laws would need to recognise "some of the fundamental differences between digital products and media businesses".
Mia Garlick, Australia and New Zealand policy director for Facebook, said the company's focus was on "achieving economy-wide privacy protection, data portability and a user-focused digital news distribution code, while preserving the many benefits that technology delivers in this country".
Hugh Marks, chief executive of Nine, owner of this masthead, said the government had provided a "clear timeline and platform for our industry to be able to engage with the social media platforms on a basis we ultimately believe will be a win-win not only for our industry and the people that work in it, but the social platforms as well".
Mr Marks highlighted the importance of recognising the "value that our content and our journalism means to the social platforms and their audiences".
The sprawling reform process will include some rapid changes but the government cautioned that "others will need further consideration and engagement given the complexity of the issues and the potential to have whole-of-economy effects".
The government has rejected some of competition tsar Rod Sims' 23 recommendations, including tax incentives to encourage support for public interest journalism.
The ACCC also recommended toughening merger laws to prevent deals that would significantly damage competition. In a cautious response, the government said it would start a broad consultation on the proposal next year.
https://www.smh.com.au/politics/federal/morrison-government-unveils-world-leading-privacy-competition-regulation-of-tech-giants-20191212-p53j8r.html