Australia looking into Facebook, Google's impact on media
Rebecca Staudenmaier with dpa
February 26, 2018
Concerned over Facebook and Google's impact on news media, Australia has joined the ranks of countries that are upping the pressure on the tech giants. The inquiry hopes to uncover how they operate behind the scenes.
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In a move likely to send shockwaves through regulator-shy Silicon Valley, Australia announced on Monday the launch of a public inquiry into the impact of digital platforms on media organizations.
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The Australian Competition and Consumer Commission (ACCC) said in a statement that it wants to determine whether platforms like Google and Facebook and news aggregator services like Apple News have impacted the funding and production of "quality news and journalistic content."
"While these technological changes have brought many benefits for consumers, this inquiry will have a particular focus on examining whether the changes affect the quality and range of news supplied to Australian consumers," ACCC Chairman Rod Sims said in a statement.
The wide-ranging inquiry will also look into how the tech giants use algorithms to present news and whether users truly "understand what data is being collected about them" as well as how it's used.
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Social media law
After a public debate in Germany, a new law on social media came into effect in October. The legislation imposes heavy fines on social media companies, such as Facebook, for failing to take down posts containing hate speech. Facebook and other social media companies have complained about the law, saying that harsh rules might lead to unnecessary censorship.
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Right to be forgotten
In 2014, the European Court of Justice ruled that European citizens had the right to request search engines, such as Google and Bing, remove "inaccurate, inadequate, irrelevant or excessive" search results linked to their name. Although Google has complied with the ruling, it has done so reluctantly, warning that it could make the internet as "free as the world's least free place."
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Blanket ban
In May 2017, Ukraine imposed sanctions on Russian social media platforms and web services. The blanket ban affected millions of Ukrainian citizens, many of whom were anxious about their data. The move prompted young Ukrainians to protest on the streets, calling for the government to reinstate access to platforms that included VKontakte (VK), Russia's largest social network.
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Safe Harbor
In 2015, the European Court of Justice ruled that Safe Harbor, a 15-year-old pact between the US and EU that allowed the transfer of personal data without prior approval, was effectively invalid. Austrian law student Max Schrems launched the legal proceedings against Facebook in response to revelations made by former US National Security Agency (NSA) contractor, Edward Snowden.
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Regulation
In China, the use of social media is highly regulated by the government. Beijing has effectively blocked access to thousands of websites and platforms, including Facebook, Twitter, Instagram and Pinterest. Instead, China offers its citizens access to local social media platforms, such as Weibo and WeChat, which boast hundreds of millions of monthly users.
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Unmasking Google, Facebook
According to the ACCC head, one of the inquiry's main goals is to make the tech giants more transparent.
"Our aim is also to understand better the digital platforms' business models and how they operate behind the scenes, and the evolving nature of the way consumers search for and receive news in Australia," Sims said.
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Facebook and Google have been criticized for profiting from content produced by traditional media companies, which have been hit by falling revenue and a drop in advertising in recent years as consumers switched to digital media. The tech giants have also faced increasing scrutiny and from European regulators.
Australia-born media mogul Rupert Murdoch, who owns The Wall Street Journal, Fox News and Sky, recently called on Facebook to pay traditional media outlets for the stories that they post on the social networking platform in order to protect quality journalism.
"Facebook and Google have popularized scurrilous news sources through algorithms that are profitable for these platforms but inherently unreliable," Murdoch said in a statement posted on News Corp's website in January.
The ACCC plans on releasing an initial report on its findings in early December this year with a final report due out in June 2019.