Influence of international digital platforms
Senate Standing Committee on Economics
Referred to Senate Economics Reference Committee
26 September 2022
Members
Chair: Senator Andrew Bragg (Liberal Senator for NSW)
Deputy Chair: Senator Jess Walsh (ALP, VIC)
Members
Senator the Hon Matthew Canavan (NATS, QLD)
Senator Jana Stewart (ALP, VIC)
Senator Dean Smith (LP, WA)
Substitute Members
Senator David Shoebridge (AG, NSW)
(for Senator McKim, 26 September 2022 to 28 November 2023)
Terms of reference
The nature and extent of international digital platforms operated by large overseas-based multinational technology companies - so called ‘Big Tech’ - exerting power and influence over markets and public debate, to the detriment of Australian democracy and users, with particular reference to:
the market shares of such international digital platforms across the provision of hardware and software services;
vertical integration, or linking of multiple services, products and/or hardware, within such international digital platforms and resultant outcomes on users’ ability to exercise choice;
whether algorithms used by such international digital platforms lack transparency, manipulate users and user responses, and contribute to greater concentrations of market power and how regulating this behaviour could lead to better outcomes in the public interest;
the collection and processing of children’s data, particularly for the purposes of profiling, behavioural advertising, or other uses;
the adequacy and effectiveness of recent attempts, in Australia and internationally, to regulate the activities of such international digital platforms;
broader impacts of concentration of market power on consumers, competition and macro-economic performance, and potential solutions; and
any other related matters.
Issues Paper
52 page issues paper released accompanied by executive summary.
Submissions
Due by 28 February 2023
77 received and published.
Public hearings
26 July, 22 August, 3 October 2023
Transcripts and documents published.
Final report tabled
30 November 2023
215 pages
Recommendations
Recommendation 1
10.33 The committee recommends that the Australian Government establish a digital platforms coordination body.
Recommendation 2
10.42 The committee recommends that the Australian Government introduce legislation to prevent anti-competitive practices through the bundling of payment services and products by large digital platforms.
Recommendation 3
10.47 The committee recommends that the Australian Government require mandatory disclosure by large digital platforms of self-preferencing conduct.
Recommendation 4
10.51 The committee recommends the Australian Government implement mandatory dispute resolution requirements for large digital platforms via regulation.
Recommendation 5
10.55 The committee recommends the Australian Government establish a tribunal for small disputes with digital platforms.
Recommendation 6
10.66 The committee recommends the Australian Government implement a requirement for designated digital platforms to report advertising material via a public register, based on turnover, and that it implement mandatory reporting on algorithm transparency, data collection and profiling by very large platforms, particularly identifying what personal data is collected and how it is used.
Recommendation 7
10.70 The committee recommends that the Australian Government regulate an individual’s right to delete personal data.
Recommendation 8
10.73 The committee recommends the Australian Government legislate for mandatory industry codes on the collection, use and retention of children’s data.
Commentary on Recommendations by Government Senators
Government senators provided commentary on individual recommendations. It also made the following general observations on the majority recommendaitons:
1.10 This Senate Economics Reference Committee Inquiry has significant parallels to the findings and recommendations of the ACCC’s inquiries, which are being consulted on and developed by the government, and the Review of the Privacy Act which is also being implemented by the government.
1.11 Government senators are of the view the government should continue to prioritise the findings and recommendations of the ACCC and the Privacy Act Review, a sentiment shared by many witnesses to the inquiry.
1.12 Government senators are of the view that the government should also continue to understand and learn from regulation pursued in other jurisdictions, and integrate this with domestic regulation where appropriate.
Commentary
Media releases
Senator Andrew Bragg, ‘Big Tech Inquiry Reports’ (Media Release, 30 November 2023)
News
Kate Weber, ‘Gov to stick to current plan on regulating ‘big tech’’ (IT News 4 December 2023)