Government gives green light to media agency inquiry in response to ACCC’s Digital Platforms Report
The Morrison government, led by Treasurer Josh Frydenberg, has approved an inquiry into advertising and media agencies, and will commit $27m over four years to a digital platforms branch – to sit within the Australian Competition and Consumer Commission (ACCC) – which will carry out such inquiries.
The inquiry into the “black box” process of buying and selling ad space is one of the most notable recommendations supported by the government in its long-awaited response to the ACCC’s Digital Platforms Inquiry. The resulting 623-page report, released by the ACCC in July, made 23 recommendations, the majority of which the government supports or supports in principle.
The ACCC Digital Platform Final Report was handed down in July
The role of the to-be-established digital platforms branch will be to: monitor and biannually report on digital platforms, take enforcement action as necessary, and conduct inquiries as directed by the Treasurer.
The response said that “the first of those inquiries will be focused on competition for the supply of ad tech services and the supply of online advertising by advertising and media agencies” suggesting that there are more inquiries to come. The ACCC added that the inquiry into media agencies will particularly focus on digital display ads.
The government – fronted by Frydenberg, Communications Minister Paul Fletcher and Attorney-General Christian Porter – noted that it “agrees that the digital platforms need to do more to improve the transparency of their operations”.
The government’s plan to implement the supported recommendations (click to enlarge)
It also committed to ensuring there is “continued vigilance in digital platforms markets by funding the ACCC”. The ACCC welcomed the “comprehensive” response.
“We are delighted that the Government has recognised the significance of the ACCC’s findings on the impact of the leading digital platforms on competition, consumer, privacy, media and advertising markets,” the ACCC’s chair Rod Sims said.
“We’re proud that Australia will now be one of the first countries in the world to develop such a comprehensive roadmap for broad reforms relating to digital platforms.
“Google and Facebook have grown to have almost unfettered market power with significant impacts on consumers that must be addressed.”
Facebook, meanwhile, emphasised that digital platforms offer choice and opportunities to Australians and new audiences to media owners and advertisers.
“We share the Government’s view that now is an opportune time for democratic countries like Australia to work with industry on new regulation for the internet that protects the choice and opportunities for millions of Australians that use our services,” Facebook’s regional managing director, William Easton, said following the government’s response.
“We support a sustainable news ecosystem which is why we work with publishers to help them reach new audiences and invest significantly in tools to provide transparency over the content people and publishers see on our services. Our primary focus remains on achieving economy-wide privacy protection, data portability and a user-focused digital news distribution code, while preserving the many benefits that technology delivers in this country.”
A Google spokesperson said it would continue to engage with both the ACCC and government on the future of the investigations.
“Australians come to Google for helpful products and services, whether it’s finding answers to questions, getting directions through maps, or businesses connecting with new audiences through advertising,” the spokesperson said.
“We have engaged closely with the ACCC and the Government throughout this comprehensive process and will continue to do so in 2020, including on focus areas such as privacy, ad tech and our work with publishers.”
In addition to the media agency inquiry, the Coalition highlighted it will facilitate the development of a voluntary code of conduct, reform media regulation to cover both online and offline companies, increase penalties for breaches of the Privacy Act, conduct a review of the legislation, and introduce a binding online privacy code.
It wrote that the government is “committed to maintaining the health and vibrancy” of the ABC and SBS and supported the recommendation that the public broadcasters receive “stable and adequate funding”.
The government chose not to support a mandatory ACMA take-down code to assist copyright enforcement on digital platforms, noting “the concerns of both major copyright owners and users of the potential unintended effects of a code”. The recommendation for the tax system to be reformed to encourage philanthropic support for journalism was also not supported, due to a focus on implementing reforms announced in 2017. Those reforms aim to “simplify administrative processes and increase transparency”.
The Morrison government received 100 submissions over the 12-week consultation period following the release of the ACCC’s report.
Brittney Rigby was Mumbrella's deputy managing editor - news and analysis. She left Mumbrella in April 2021.
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topics
ACCC
Australian Competition and Consumer Commission
Christian Porter
Digital Platforms Inquiry
Digital Platforms Report
Facebook
Google
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inquiry into media agencies
Josh Frydenberg
media agencies
media agencies inquiry
Paul Fletcher
Well, that’s it folks, pack it up. It’s been a good run.
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I wonder how media agency ‘leaders’ will insulate themselves from this one. A fair bit of who’s signature is on that one is about to take place, followed by some uncomfortable gulps.
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“Coalition highlighted it will facilitate the development of a voluntary code of conduct”. – We already have that! This is just blowing hot air around. What a waste of time.
The media agency enquiry sounds very mysterious. I wonder whether they will pull apart the funding model for the big consortium agencies and look into how much margin the trading desks are taking
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Must be referring to the Facebox and the Googlebox.
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Someone pass me the popcorn….
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What will they go after first?
– deals where agencies always choose their own ‘trading desk’ over everyone else
– where agencies preference media who give them free inventory for their ‘barter’ products
– agencies where rebates and inventory is passed through Singapore and then sold back to AU co
– platforms that allow dual access where fees to clients are hidden
– Fees that claim to be one thing, but are actually completely different
– Claiming to sell clients media that has been purchased but as a discount, but actually has been provided free due to client investment and then sold back to liquidate the inventory.
– not allowing media companies access to clients or staff unless they pay access fees
ACCC will have a ball on this one.
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The carnival is over
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… so where are all the ‘Agency CEO responses’?!
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They are here:
https://mumbrella.com.au/a-long-overdue-big-step-forward-media-agencies-respond-to-accc-ad-tech-inquiry-610344
Thanks,
Vivienne – Mumbrella
Why does Mumbrella continue to allow comments to be made anonymously? If you want to print allegations of malpractice, put their names to it.
Why haven’t these side-line barrackers said something before, if they’re as knowledgeable and clever as they make themselves out to be about transparency and questionable practises?
I’d bet none have run a media agency.
I dislike malpractice as much as the next bloke, but I dislike functionaries yapping from the safety of the sidelines under the cloak of anonymity a lot less.
Brave little souls.
Alan Robertson
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Unfortunately, by naming yourself in such a small industry as ours, you would risk a lot, especially with corporate policies on public commentary on press and social media etc. Naming and shaming is good, but Australian law allows defamation claims even if allegations are true, so publicly calling someone out with your real identity would pose a real litigation risk…
I’d argue that anonymous comments allow for a more frank discussion without putting your job at risk and risk of getting sued.
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I run a media agency, that’s my real name and I and others (notably the independents) have been saying for years that what is happening is fraud.
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As an agency owner I can’t pretend to be too excited about this imminent cavity search
So I’m going to hide behind an anonymous comment and grumble
I’m going to grumble about brands – my clients – who hijacked a digital platform enquiry and pushed for an inquest into agency services.
It’s just not the same thing. Facebook and Google have taken all the money and the entire sector is on it’s knees fighting for scraps.
As well as demolishing the media industry these global tech titans abuse privacy and dodge tax.
For a while agencies received rebates from publishers trying to stay alive. Whilst questionable clients had sliced fees and agencies need cash to make payroll.
This is not a profitable business. Agencies work hard for a living and it’s not easy to push back on demanding clients.
The industry has always taken a toll. But now its getting hollowed out by big tech. Facebook and Google have all the money, all the data and all the control.
This media agency review misses that bigger picture. Suddenly it’s about small time hustlers. Instead of the kingpins. How disappointing.
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Typical Boomer doesn’t like the internet giving the little guy (who stands to lose their job) a voice and demands justice… or else (he’ll probably whinge some more)!
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Poor Xaxis and Amnet….. nice knowing you both!!! Goodbye in the bin!
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Particularly Xaxis, the bane of literally every publisher!!!
Well deserved, Ill laugh as they toss it into the flames.
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