Facebook, Google welcome ‘smart’ regulation in wake of ACCC report

Local Facebook and Google execs have backed moves to regulate the sector in the wake of a major report.

ACCC chairman Rod Sims in his Sydney office. John Feder/The Australian

The local bosses of technology giants Facebook and Google say they support “smart regulation”, three days after Australia’s competition watchdog warned it will clampdown on the industry.

Jason Juma-Ross, director of technology and strategy at Facebook ANZ, said the company backs industry regulation, but cautioned that it can’t be at the expense of innovation.

“We feel that regulation is important and that smart, intelligent regulation that helps to protect users and helps to protect their privacy but also doesn’t stifle innovation is going to be important,” he told a business conference in Sydney.

Facebook is ready to work with Australia’s media and competition regulators as well as other watchdogs around the world “on putting that regulation in place”, Mr Juma-Ross said.

“But the important thing with all of that is that we have consistent standards around the world, otherwise Australian companies would potentially find it harder to go to market in other contexts.”

Melanie Silva, managing director of Google Australia & New Zealand, said it is “fair” that big companies are scrutinised, which is “normal in a functioning economy.”

“Smart regulation that’s targeted to solve a specific problem that’s been identified is always something that we’re supportive of,” Ms Silva told a business conference in Sydney.

The long-awaited landmark report by the Australian Competition & Consumer Commission was released on Friday, with chairman Rod Sims warning that the companies must take responsibility for what material ended up on their platforms, after the Christchurch massacre in March was live streamed on Facebook.

Mr Sims said the days of the “trust us” response from Google and Facebook were over.

The ACCC report included 23 recommendations, including a specialist digital platforms branch within the ACCC to investigate, monitor and enforce, changes to the merger law to take account of data being acquired and advance notice of acquisitions by tech giants that might affect competition in Australia.

The 600-plus page ACCC report also recommended Google provide Australian users of Android devices the ability to choose their default search engine.

Mr Juma-Ross said Facebook “absolutely takes responsibility” for what appears on its platform.

“We’re working really, really hard to be able to make sure that some of those things don’t happen again.”

Ms Silva also said the ACCC report, included a “number of mentions of things that been beneficial from our platforms”, citing the benefits for advertisers.

“I think there’s an agreement that online advertising has been good for advertisers, it’s promoted lower cost to channels, its provided them to reach global audiences in a way they’ve never been able to do before,” she said.

“It does seem to be a focus that big is bad, and I think there are some benefits of larger organisations that seem to be overlooked,” she said, adding that they can afford to invest in research and engineers such as AI.