The Australian Competition and Consumer Commission (ACCC) is delving into the dynamic landscape of internet search engine quality and services, examining the far-reaching effects of global reforms and technological advancements.
Today, the ACCC is inviting the voices of consumers, businesses, and industry stakeholders to contribute their perspectives on the state of general search services in Australia, marking a significant step in its comprehensive five-year inquiry into digital platform services.
In its latest move, the ACCC has released an issues paper, setting the stage for a dialogue on various aspects shaping the realm of general search services. It aims to gauge insights on the level of competition within the sector and the evolving landscape of search quality.
Central to the inquiry is understanding consumer preferences in search services and the intricate interplay between market competition and the quality of search results.
The ACCC is also closely examining the ripple effects of both regulatory shifts and industry advancements. Of particular interest are global initiatives such as the introduction of choice screens and the advent of generative artificial intelligence, highlighting the interconnectedness of regulatory frameworks and technological innovation in shaping the digital search ecosystem.
By opening avenues for feedback, the ACCC aims to humanise the discourse surrounding internet search services, recognising the pivotal role of diverse perspectives in shaping regulatory policies and fostering innovation in Australia’s digital landscape.
According to ACCC Chair Gina Cass-Gottlieb significant changes have occurred since the ACCC last examined search services in 2021.
“We’ve seen new laws introduced overseas that place obligations on so-called gatekeeper search engines and the emergence of new technologies, like generative AI, that have changed the way consumers search for information online and may be impacting the quality of the service they are receiving,”
“The ACCC wants to understand the impact of these developments on general search services and ultimately, how they affect competition and consumers,” Ms Cass-Gottlieb said.
In previous reports, the ACCC examined competition and consumer concerns regarding general search and web browser services, as highlighted in its September 2021 and Digital Platforms Inquiry reports. They identified that Google’s search engine being pre-installed as a default on devices was a key factor in its dominance in the Australian search engine market.
September 2022 Report
In its September 2022 report, the ACCC made recommendations for new legislation aimed at fostering competition in digital platform services.
The recommendations included the possibility of implementing a mandatory code for designated search services, which could increase consumer choice and reduce barriers to entry for competitors.
The ACCC has also expressed appreciation for the Government’s tentative support of the recommendations.
Additionally, the new report will examine legislative changes occurring or under consideration in the European Union, United Kingdom, and other regions. These changes impose obligations on search engines to foster competition.
While the report will address the emergence of AI-powered search engines and their potential impact on market competition, the ACCC’s focus on generative AI will be confined to general search services.
Other aspects of generative AI, such as privacy, online safety, and misinformation, will not be within the scope of the report.
“We are eager to hear from businesses and consumers about their experiences with general search services to better understand how regulatory and industry developments are affecting the level of competition and consumers in the market for general search services.” Ms Cass-Gottlieb said.
Fifth Report Of The Digital Platforms Services Inquiry
In its fifth report on the Digital Platforms Services Inquiry, the ACCC put forth a series of proposals aimed at enhancing competition within the digital economy, evening out the competitive landscape between major tech firms and Australian enterprises, and bringing down prices for consumers.
Among these proposals are the introduction of specific mandatory codes of conduct tailored to individual “designated digital platforms,” drawing upon legislative principles.
This proposed regulatory framework would complement Australia’s existing competition laws by tackling issues such as anti-competitive behavior, unfair treatment of business users, and obstacles hindering the entry and expansion of potential competitors.
Additionally, the ACCC has suggested imposing new mandatory obligations on all digital platforms to combat scams, harmful applications, and fake reviews. These measures would include requirements for notice and action, as well as stricter verification processes for business users and reviews.
- Consumers, businesses and interested parties are encouraged to make submissions to [email protected] by 17 April 2024.
ACCC’s Digital Platforms Branch – Background
The Digital Platforms Branch of the ACCC is currently engaged in a comprehensive five-year investigation into the markets concerning digital platform services within Australia, as well as their implications for competition and consumers.
The inquiry, initiated by the Treasurer in 2020, involves regular reporting to the Treasurer every six months. The examination encompasses various types of digital platform services, including advertising services and data brokers.
This issues paper serves as a vital resource for the forthcoming ninth report to be presented to the Treasurer by September 30, 2024.
Meanwhile, the eighth interim report, focusing specifically on competition and consumer concerns regarding data broker services in Australia, is slated for submission by March 31, 2024.
Prior reports have delved into a range of topics, such as online private messaging services, market dynamics, consumer choice screens in search services and web browsers, app marketplaces, online retail platforms, regulatory reform, social media services, and the expansion of ecosystems.
Of particular note is the ACCC’s recommendation, outlined in the Report on Search Defaults and Choice Screens, advocating for the adoption of choice screens, a measure now operational in various international jurisdictions.
The ACCC has acknowledged several concurrent government initiatives addressing broader issues related to generative AI.
They include the Department of Industry, Science and Resources’ consultation on “Safe and Responsible AI in Australia” and the House Standing Committee on Employment, Education and Training’s investigation into the utilization of generative AI within the Australian education sector.
