Saturday, June 25, 2022

Australian antitrust regulator points out harmful effect of Google’s dominance to businesses

The brand logo of Alphabet Inc's Google is seen outside its office in Beijing, China August 8, 2018. Picture taken with a fisheye lens. REUTERS/Thomas Peter/File Photo

Image courtesy of Thomas Peter and Reuters

The Australian antitrust regulator has urged the Australian government to control the dominance of Google in the Australian online advertising market.

Reuters has recently released a report from Tuesday by the Australian Competition and Consumer Commission or ACCC that points out to the near-monopoly of Google in the Australian online advertising market at the expense of creators and customers alike, urging the Australian government to bridle it.

The report said that more than 90 per cent of clicks on advertisements in the Australian chain of supplies “ad-tech” cleared at least one service of Google last year.

Rod Sims, chairman of the ACCC remarked alongside the report, “Google has used its vertically integrated position to operate its ad-tech services in a way that has, over time, led to a less competitive ad tech industry… This conduct has helped Google to establish and entrench its dominant position in the ad tech supply chain. We recommend rules be considered to manage conflicts of interest, prevent anti-competitive self-preferencing, and ensure rival ad tech providers can compete on their merits”.

A comment from a spokesman for Google is yet to transpire. Google posted in a blog that its advertising technology supported more than 15,000 Australian jobs and annually boosted the Australian economy with AUD 2.45 billion a year soon before the report by the ACCC.

The ACCC said that the Stateside giant in tech enjoyed vast amounts of data of online users from its engine for searches, mapping, and video-streaming services on YouTube, and must disclose further how it uses it to sell advertisements.

It sought special powers to address the imbalance of access of advertisers to the data of consumers, such as rules that require them to detach data between companies or share them with competitors.

The report on “ad-tech” was part of its wider examination of online platforms, which led Google to pull back its main services from Australia over its laws that require it to pay for content in media that drives traffic to its website earlier this year.

Google has since announced deals to pay content with most of the largest outlets in Australian media, as did the Stateside giant of social media Facebook that decreased news feeds in Australia for a week in the days before the Australian government passed the law.

Having commissioned the report, Australian treasurer Josh Frydenberg remarked that the Australian government would consider the analyses of the report.

Mark Colin Escanilla Abliterhttps://www.colinabliter.blogspot.com/
Mark is a writing contributor for Pigeon Week, specializing in relevant stories on issues such as business.

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