Market - - Dec 04,2017
The Australian Competition and Consumer Commission (ACCC) has announced an inquiry to analyze the influence of social media and search engines on the media sector.
Australia’s competition regulator, ACCC (The Australian Competition and Consumer Commission) announced on Monday about the examining the effects that social media and search engines and other digital content accretion platforms are having on the advertising and media markets. It is evident that the government is taking a keen interest in this inquiry that is part of a wider media reform setup.
According to reports, one of the prime reasons for this significant step taken by ACCC is because of the clasped condition of traditional media companies due to the presence of online rivals, which has further led to a steep drop in advertising revenues.
Rod Sims, ACCC chairman said in a statement that the motive of the inquiry is to study “how digital platforms such as Facebook and Google” function to completely understand their influence in the Australian sector.
He further added, the agency would carefully investigate whether the different digital platforms are implementing market power associated with “commercial dealings” to the disadvantage of consumers, advertisers, and media content creators.
This investigation will hold power to demand information from Facebook, Google, and other firms. The Australian government has ordered the inquiry, which forms the foundation for wider reforms during rising concerns related to the future of the media sector. This scenario has been aggravated by a noticeable statistics of falling profits, the rise of fake news and newsroom job cuts.