Celia Hammond (Curtin, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer please update the House on the ACCC's report on digital platforms and how the Morrison government is on the side of Australians to ensure that they get a better deal?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Curtin and congratulate her on an outstanding maiden speech in this parliament. She brings to this place a couple of decades of experience in academia, and that will be put to good use here.

The member for Curtin, like others in this place, is aware that the member for Bradfield and I released last Friday the ACCC's groundbreaking report into digital platforms. It followed an 18-month inquiry which was initiated by the then Treasurer, now Prime Minister, into the social media and search engine giants—in particular Google and Facebook. The ACCC used their compulsory powers to acquire information to look into the impact that the concentration in that market and the market power of those particular companies were having on consumer outcomes. There were 23 recommendations across consumer outcomes, competition outcomes and a more level playing field for traditional media businesses. It has to be understood that both Google and Facebook are among not only the most valuable companies in the world but also the most powerful, and they are absolutely ubiquitous across our economy and our society. In fact, Google has a 95 per cent market share of online search, and more than 17 million Australians log on to Facebook every month. And of every $100 in online advertising, excluding classifieds, $47 is spent with Google and $24 with Facebook.

The government accepts the overriding conclusion of the ACCC that there needs to be reform in this area—that these companies need to be held to account and their activities need to be more transparent—so the government will conduct a 12-week consultation period with key stakeholders before providing its final response before the end of the year. These recommendations refer to unfair contract terms; changing the merger laws; and setting up a digital markets branch within the ACCC and a code of conduct which would need to be approved by the regulators, which would create more transparency and a fairer deal between traditional media businesses and Google and Facebook, as well as an ombudsman's scheme that will help resolve disputes.

We understand that Australians need to be protected. Their interests need to be protected in this age of digital disruption, and this groundbreaking, world-first report provides a pathway forward for us.