Australia competition watchdog calls for tough rules to curb power of Google, Facebook

The head of Australia’s competition watchdog warned Monday that tough new regulation of tech giants like Google and Facebook was needed to protect the future of independent journalism.

Rod Sims, chairman of the Australian Competition and Consumer Commission (ACCC), said the market power wielded by Google and Facebook has had a devastating impact on Australian news media.

While the number of journalists employed by Australian newspapers fell 20 percent from 2014 to 2017 as print advertising revenues dwindled, Sims said, Google and Facebook between them captured nearly 70 percent of all online advertising spend.

“This shift in advertising revenue online, and to digital platforms, has reduced the ability of media businesses to fund news and journalism,” Sims said.

Sims suggested a tax break for news media which meet a set of quality standards.