Law, Innovation and Technologies (11271) Report: Semester 2, 2019

This report provides an analysis of primary issues such as market concentration and privacy concerns within digital platforms, drawing from the Australian Competition and Consumer Commission's digital inquiry report. It examines the technological, legal, and commercial aspects of these issues, inc...Read More

Running head: LAW, INNOVATION AND TECHNOLOGIES
Law, Innovation and Technologies
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction....................................................................................................................2
Primary Issues like Market Concentration and Privacy.................................................2
Technological, Legal and Commercial Aspects of the Issues Indentified.....................3
Cogent Recommendations in Relation To the Law Which Deals With the Issue..........4
Transcript.......................................................................................................................5
References......................................................................................................................7

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Introduction
The purpose of this paper is to provide an analysis in relation to the primary issues
like market concentration and privacy. In addition the paper discusses the technological, legal
and commercial aspects of the issues indentified. The paper also aims to provide cogent
recommendations in relation to the law which deals with the issue. The report is therefore
divided into three sections.
Primary Issues like Market Concentration and Privacy
According to the digital enquiry report provided by the Australian Competition and
Consumer Commission, the rise of digital platforms have led to significant implications and
consequences in regarding business models of digital platforms. These include issues like
competition, society and consumers. However recently a debate has come up in relation to the
responsibilities which digital platforms have with respect to the markets in which they
operate.
Wide ranges of questions have been asked with respect to the impact and role of
digital platforms in Australia. These include issue like allegations regarding anti-competitive
conduct as well as privacy. The issues also cover intellectual property issues and issues
regarding despairing media regulations. In addition, the problem also extends to harmful
conduct and disinformation along with the scale and scope of data belonging to the users
being collected by such platforms. The issues also extend to the risk of consumers being
subjected to exploitations in terms of their vulnerabilities’. It has been argued by the report
that the ubiquities of facebook and google have placed them in a privileged position. These
companies are a gateway for reaching consumers in Australia and in many ways they are
partners of the several Australian businesses which include news media businesses. Large
firms have increased responsibility which less significant firms do not have. As the

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functioning of the digital platforms is opaque and they function at a large scale it is difficult
to take into consideration or analyze the actual standards in terms of behaviour which they
are complying. However for various media businesses the low operational cost and expanded
reach offered by the digital platforms have come at a different price. There has been a
significant loss in terms of advertisement revenue for print media since the rise of digital
platforms. Many print media business find it difficult to survive and as a result they have
reduced the scale of journalism and news. There is a significant search going on n relation to
replacing the situation with online journalism. The impact of this revenue deduction is
properly visible in relation to local and regional news businesses.
Technological, Legal and Commercial Aspects of the Issues Indentified
It has been argued by the ACCC that the regulatory framework which governs
communication, media and advertisement needs to be addressed as they do not provide
competition to be done on grounds of merits. At present, competition in Australia is governed
by the ACCC under the provisions of the Australian Competition and Consumer Act 2010
(Cth). The legislation deals with, competition related aspects such as transfer pricing, cartel
conducts, anti-competitive arrangements, resale price maintenance, exclusive dealing, third
line forcing, secondary boycotts and use of dominant positions with respect to the Australian
market place. If any conduct is identified on the part of the organization, the ACCC can take
legal action and impose civil and criminal penalties and sanctions under the CCA. Businesses
which seek to advertise their products and services have significant gained from digital
platforms. These platforms provide a cheaper and a focused way of getting to the consumers
who spend most of their time online. This time is particularly spent on the websites and
applications owned by two major digital platforms of facebook and Google. Advertisers have
generally wanted to utilize the collected information with respect to potential audience for the
purpose of targeting the advertisement. This leads to the violation of privacy laws. The

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Privacy Act 1968 does not allow for the use or collection of individuals from individuals
without their consent. Although, these digital platforms take consent in form of digital
signatures from the consumers, the extent to which such consent is informed is not known.
In relation to the commercial aspect of the problem it can be highlight that although
the businesses use Facebook and Google as a platform to advertise, they must also take into
consideration that these platforms are also their competitors. This is because both the
platforms have an adjacent market where they are dealing with consumer products such as the
Pixle mobile phone series launched by Google. They may get significant insider information
about the other products which can be used by them for the purpose of enhancing their own
adjacent markets at the cost of the other firms. In addition, it must be taken into consideration
that the issue is beyond advertisement. This is because businesses rely on the services which
these platforms provide in order to reach the consumers. Amidst the lack of transparency
there is a significant risk of the fact that the businesses may be exploited by the platforms in
relation to providing an advantage to their own products or businesses which they seek to
favour.
Cogent Recommendations in Relation To the Law Which Deals With the Issue
There are several recommendations which can be made in relation to the issues
discussed above. The first recommendation would be in relation to changing the merger laws-
This means that changes are needed to the provisions of s50(3) of the CCA for the purpose of
including the likelihood a merger can have with respect to removing a competitor from the
market. The second recommendation is in relation to changes to internet browser and search
engine defaults. It need to be taken into consideration that Google should give Australian
consumers who use android devices options which are available to European users. This
means that they should be provided with the option to select internet browser and search

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engine defaults from a variety of options. The third recommendation would be in relation
inquiry for ad teach services as well as advertising agencies. A digital platforms branch has to
be established within ACCC for the purpose of building and developing expertise. The
branch can be used for the purpose of conducting inquiry into competition regarding ad teach
services as well as advertising agencies. These should consider matters such as lack of
transparency, changes of price by suppliers, process of sale for the products and services and
impact on competition for the consolidation services. The fourth recommendation is in
relation to adequate and stable funding of public broadcast. Adequate and stable funding of
public broadcast has to be provided to SBS and ABC in recognition of their role with respect
to addressing risk of less public interest journalism which provides for betterment of the
society. The fifth recommendation is in relation to enhancing the ways in which consent is
obtained by the digital platforms. It needs to be ensured that the consent taken from public
has to be done through an informed way rather than standardized consent.
Transcript
This video is in relation to the recommendations made in connection to the digital inquiry
report.
The paper provides for 6 recommendations
1. The first recommendation would be in relation to changing the merger laws
This means that changes are needed to the provisions of s50 (3) of the CCA for the
purpose of including the likelihood a merger can have with respect to removing a
competitor from the market.
2. The second recommendation is in relation to changes to internet browser and search
engine defaults.

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It need to be taken into consideration that Google should give Australian consumers
who use android devices options which are available to European users.
This means that they should be provided with the option to select internet browser and
search engine defaults from a variety of options.
3. The third recommendation would be in relation inquiry for ad teach services as well
as advertising agencies.
A digital platforms branch has to be established within ACCC for the purpose of
building and developing expertise.
The branch can be used for the purpose of conducting inquiry into competition
regarding ad teach services as well as advertising agencies.
These should consider matters such as lack of transparency, changes of price by
suppliers, process of sale for the products and services and impact on competition for
the consolidation services.
4. The fourth recommendation is in relation to adequate and stable funding of public
broadcast.
Adequate and stable funding of public broadcast has to be provided to SBS and ABC
in recognition of their role with respect to addressing risk of less public interest
journalism which provides for betterment of the society.
5. The fifth recommendation is in relation to enhancing the ways in which consent is
obtained by the digital platforms.
It needs to be ensured that the consent taken from public has to be done through an
informed way rather than standardized consent.

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References
Flew, T., 2019. Guarding the gatekeepers: Trust, truth and digital platforms. Griffith Review,
(64), p.104.
Flew, T., Martin, F. and Gillett, R., 2019. Submission to the Digital Platforms Inquiry.
Greenleaf, G., Lindsay, D.F., Arnold, B., Clarke, R., Lane, K. and Coombs, E., 2019.
Regulation of Digital Platforms as Part of Economy-Wide Reforms to Australia's Failed
Privacy Laws (Australian Privacy Foundation Submission to the Australian Government on
Implementation of the ACCC's Digital Platforms Inquiry—Final Report).
Sims, R., 2019. The regulator: Dealing with the digital giants. Company Director, 35(2),
p.50.