Every day, we exchange jokes about the digital businesses that are quietly controlling our lives. But is it really a laughing matter? The Australian Competition and Consumer Commission (ACCC) has been studying this question since 2017 and recently published its latest interim report, calling out Google, Meta and X for facilitating “widespread, entrenched and systematic harms” towards citizens, not just in Australia but worldwide.
With much power comes much responsibility
The Commission reports its updated findings approximately every six months. The power wielded by platforms such as those mentioned above has been raised in the past, and is particularly under the spotlight now for several reasons.
This is the first update since Twitter was acquired by Elon Musk. Within weeks of doing so, he had laid off half the workforce – most of whom were involved in content moderation. The report also identified Facebook as having a vital role as a gatekeeper between those disseminating information and the Australian public. Gina Cass-Gottlieb is Chair of the ACCC and said: “The critical positions that digital platforms hold, as ‘gatekeepers’ or ‘intermediaries’ between businesses and consumers, mean they have a broad influence across the economy, making the reforms we are recommending crucial and necessary for all Australians.”
Quelling the rise in scams and fake news
The report called on Australian lawmakers to bring in legislation that would obligate digital platforms to introduce and implement user-friendly processes by which fake reports, scams and harmful apps and fake reviews could be reported and to establish a coherent dispute resolution mechanism to see incidents carried through to a conclusion.
The report stated that consumers regularly experience difficulties getting such reports taken seriously and seldom receive any sort of comfort or closure. It added that Scamwatch has seen an increase in mobile and social media scams to $92 million in 2021.
Ms Cass-Gottlieb called for “more action on fake reviews from platforms whose services feature ratings and reviews, including those appearing on search, social media, app stores and online market places.”
The report recommended a completely new digital platform ombudsman scheme and suggested the introduction of a verification system to keep scammers at bay. It also proposed that digital platforms could improve transparency by publishing their review verification processes for all to see.
Ms Cass-Gottlieb noted that the reforms being suggested are neither more nor less than what is already in place outside Australia, and that they would align Australia with a global shift towards placing more responsibility on digital platforms to be open, responsible and responsive.
Shifting the attention from casinos and blockchain
Over the past couple of years, Australian lawmakers have been almost exclusively focused on two areas, so others are being forgotten. First there is the ongoing, expensive and ultimately fruitless campaign to battle against iGaming – online betting on casinos and sports betting. The regulator has been engaged in a fruitless game of whac-a-mole, as shutting down one platform merely opens two others.
Regulation is always going to be of more material benefit than prohibition, and is something the Australian public can get behind. Right now, if you arrive in Australia and you want to play casino games on your mobile, you can turn to a casino review site like Gamble Online Australia and you will be greeted by a long list of options. The government could easily implement a similar system based on the factors used to by the independent third partry reviewers.
The related area of crypto is currently enduring a similar fate, after a two year consultation led to a draft that was routinely thrown out by the Australian senate. But while lawmakers are focused on these highly specific areas, the ACCC suggests insufficient attention is being devoted to the bigger picture.
Introducing codes of conduct
The final recommendation in the report advocates mandatory codes of conduct for certain platforms in which the evolution of only two or three major players has also led to the evolution of certain anti-competitive behaviours.
The ACCC makes reference to the most powerful digital platforms engaging in such actions as self-preferencing, exclusivity agreements, building artificial switching barriers and withholding access certain data inputs, hardware and software.
It said: “The need to prevent and deter such conduct where it reduces competition is a major focus of this report.”
The report went on to cite the hundreds of acquisitions that businesses like Meta, Apple, Google, Amazon and Microsoft have made to remove potential competitors.
A separate Code of Conduct has been recommended to combat fake news. The report has advised the major platforms to work with the Australian Communications and Media Authority.
Australian Government commits to taking a lead
Australian Government treasurer Jim Chalmers has confirmed that the government is reviewing the ACCC’s report and will carry out public consultations with a view to addressing the recommendations. He added that his aim is to ensure Australia has appropriate regulations in place to be a global leader in today’s digital economy.
