Govt commits to digital platform reforms

The federal government has revealed plans to introduce a series of reforms aimed at curtailing tech giants’ market power in response to the ACCC’s Digital Platforms Inquiry.

The response and implementation roadmap to the inquiry have been developed in consultation with the public and industry.

As part of its response, the government has committed to spending $26.9 million to establish a special unit within the ACCC, tasked with monitoring and reporting on the state of competition and consumer protection in digital platform markets and taking enforcement action as needed.

The new unit will also be tasked with undertaking inquiries as directed by the Treasurer. The first inquiry will cover the supply of online advertising and ad tech services.

The ACCC will also be instructed to develop a voluntary code of conduct aimed at addressing bargaining power concerns between digital platforms and news media businesses, and protecting local media industries.

The government has pledged to step in with further action — including potentially the creation of a mandatory code — if the ACCC cannot reach an agreement with the industry on a finalised code by November 2020.

Other reforms will include working towards a platform-neutral media regulatory framework covering both online and offline delivery of media content to Australian consumers, and reviewing the Privacy Act to align it with the government’s plan to introduce a binding social media and online platforms privacy code.

Announcing the commitment on Thursday, Prime Minister Scott Morrison said he aims to turn Australia into a model jurisdiction for the world in terms of dealing with complex issues such as the market dominance of the major digital and social media platforms.

He said the aim of the reforms is to create a level playing field for all companies by expanding the regulations and systems that were designed for an analogue economy to the digital domain.

But the government has yet to decide whether to implement other aspects of the ACCC’s recommendations, such as changes to merger law aimed at preventing major companies from buying up and absorbing or dissolving potential competitors before they can emerge.

The government plans to commence a broad consultation on these proposed amendments next year. The government also plans to consult further on the ACCC’s proposal to introduce a mandatory takedown code for copyrighted content.

Consultations will also cover proposed amendments to the Privacy Act, such as whether to introduce a direct right of actions for individuals to protect their privacy, strengthen notification requirements related to the collection of personal information, as well as consent requirements and pro-consumer defaults for privacy settings.

Communications Alliance welcomed the government’s decision to consult with industry before implementing the proposed privacy and other reforms.

“It is important that Australia’s privacy framework be fit for purpose in the digital age — but equally vital that any overhaul of the Privacy Act be underpinned by a full analysis of the economy-wide impact of proposed reforms, not just the impact on digital platforms,” Communications Alliance CEO John Stanton said.

“We are also pleased to see that the government has resisted the ACCC’s calls for immediate reform to the Australian Consumer Law and a mandatory take-down code to assist copyright enforcement, and instead has committed to wider, more contextualised consultation on these matters of economy-wide importance.”

Meanwhile, the Australian Information Industry Association (AIIA) announced it is seeking assurances from the government that it will also consult with industry throughout the implementation process for the government’s response.

“The AIIA acknowledges that the Government has the right to carefully consider the influence of large digital platforms. This must be balanced against the risks that further regulatory measures may impact innovation and the operation of the digital economy,” the peak body said in a statement.

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