TikTok pulls away from ACCC’s ‘social media’ definition; stressing ‘challenger’ position
TikTok has picked itself apart from platforms such as Facebook in its submission to the Australian Competition & Consumer Commission (ACCC) in response to the digital platform service inquiry, emphasising its “challenger” position, and calling for a better definition of “social media service providers”.
The ACCC has released the latest submissions to its issue paper last week. Apart from TikTok, the latest releases also include those from Twitter, Meta, Nine and Free TV.
TikTok said in its submission it operates within a “competitive canvas”. Despite its rapid growth as evidenced by the booming traffic to its ad portal, TikTok has positioned itself as a new entrant seeking to diversify the digital platform landscape.
“There are no doubt structural challenges for new entrants wishing to compete against large and established platforms like Meta’s Facebook,” read the submission.
“TikTok wishes to continue presenting new and disruptive competition to incumbent platforms. Many of these platforms have market power across broad app ecosystems, which they can leverage into new services in a way challenger firms (such as TikTok) cannot.”
Additionally, TikTok pulled itself from being included as a “social media service providers” as defined by ACCC.
“… the listed platforms generally focus on different experiences and offerings for users, not all of which involve “social” connections as a key factor.
“For example, platforms like Facebook and WhatsApp emphasise social connections and messaging features, whereas TikTok focuses on entertaining and inspiring content, regardless of whether it originates from a social connection.”
However, Meta painted a different picture in its submission, saying that new entrants including TikTok, BeReal, WeAre8 and Poparazzi, as well as existing platforms including YouTube, Snapchat, Twitter, Reddit, Discord and Pinterest have led to further market segmentation.
The parent company of Facebook, Instagram and Whatsapp said this segmentation has left Meta with little “enduring market power” and “strong competitive constraints”.
“Consumers are in fact enjoying greater output, growth and innovation from competing services, faster competitive responses to innovations, increased entry from innovative and well-capitalised new participants, and greater ability than ever to multi-home or switch between services,” said the submission.
TikTok has recently bolstered its ad offering as announced in its first Australian Upfront last week, introducing ad placement and shopping ad tools.
The ACCC is due to release the sixth interim report on potential competition and consumer issues on Australian digital platforms by 31 March 2023.
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