Call for controls over tech giants

TECH giants such as Google and Facebook will be forced to better protect Australians’ privacy as part of a crackdown by the competition watchdog.

Among the 23 recommendations of the “groundbreaking” call to action are stopping Google being the default search engine on mobile phones, more protections for our personal data and a new industry code to stop social media companies ripping off news sites.

The Morrison Government will now launch a 12-week consultation process before delivering its response to the Australian Competition and Consumer Commission’s 600page report.

The review found tech giants should be subject to more regulation because they were now too big and gathered a considerable amount of personal data.

Their market power had distorted the ability of Australian businesses to compete, the review found.

The 18-month inquiry’s findings come as media companies have been arguing that Google and Facebook are reaping advertising revenue from their content.

For every $100 spent in online advertising, $47 went to Google, $24 to Facebook and $29 to the rest.

The ACCC recommendations include: A NEW specialised ACCC digital branch with the power to hold public inquiries and compel companies to hand over information. CONSTANT monitoring of how Google and Facebook prioritise news and adverts. FORCING Google to let customers choose their default search engine and internet browser while using Android phones and tablets. CODES of conduct governing the relationship between tech giants and media companies to ensure they were being treated “fairly, reasonably and transparently”.

Treasurer Josh Frydenberg said the “world-first” inquiry revealed Australia’s regulations were unfit to deal with the volume of personal data collected by the tech giants.

“These companies are among the most powerful and valuable in the world and they need to be held to account and their activities need to be more transparent,” Mr Frydenberg said.

“Whether it be print, radio or television, content generated by journalists and owned by media companies is being displayed on social media and search engines, often without a negotiated agreement.”

Michael Miller, executive chairman of News Corp Australasia, publisher of the Mercury, welcomed the “strength of the language and identification of the problems created by the dominance and immense market power of the digital platforms”.

“The recommended regulatory and legislative measures must be powerful enough to correct the adverse effects associated with digital platforms and their impact on Australian consumers and businesses, including news content creators,” Mr Miller said. “We will work with the Government to ensure their commitment is matched by real change.”

The Government has promised to deliver its response to the report by the year’s end.