Google, Facebook hit back against critics

Google and Facebook have defended their role in the media landscape.

Google and Facebook have defended their role in the media landscape as the digital advertising duopoly respond to criticism that they are draining revenue from quality journalism and other content creators.

In separate submissions to the Australian Competition & Consumer Commission, the tech titans struck an optimistic note about the ubiquity of free content aggregated by their platforms on the internet, despite concerns about their dominance of the online ad market and the technology used to sell ads across the web.

Media executives criticised Google and Facebook for glossing over and failing to discuss issues ranging from fake news and inflated ad sales metrics to fraudulent traffic and casting themselves as distributors with no responsibility for what flows through their pipes.

Media industry leaders point out that although Facebook and Google pose as tech companies, they are in the business of selling ads, just like any traditional media company.

In an opinion piece to accompany Google’s 14-page submission, local managing director Jason Pellegrino said: “We at Google are not content makers, we do not employ people to work as journalists, and we have no intention of becoming a news publisher.”

Facebook’s submission addresses “data and transparency” but makes no mention of how research firm Cambridge Analytica was able to use personal data on 87 million Facebook users, including 311,129 Australians, prompting the Australian privacy commissioner to investigate.

Dated April 18, the 59-page Facebook submission was made more than four weeks after the global scandal erupted.

“We take the responsibility that comes with collecting people’s data very seriously, and work hard to ensure that people understand what information we collect and the controls they have over how it is used,” Facebook wrote.

In less than a decade, a handful of tech companies including Google and Facebook have emerged as digital monopolies wielding enormous influence over the media and entertainment industries, prompting widespread anxiety matched only by anger about their corporate tax avoidance.

This has led to calls for Google and Facebook to face greater regulatory oversight. Among the most ardent supporters of action is Free TV, the industry group for commercial television networks including Seven, Nine and Ten.

Among the issues identified by Free TV are questionable claims about the reach, viewability, effectiveness and cost of ads on platforms operated by Facebook and Google.

In its submission, Free TV also outlines concerns about the ability of Facebook and Google to acquire potential competitors, their role in facilitating piracy, and how they profit from the content of others without payment or consent.

“This is a watershed moment for the media sector. Google and Facebook have become virtual monopolies, with huge influence and market power, but very little regulatory oversight,” said Free TV chief executive Bridget Fair.

“We are competing with these platforms for advertising dollars and for viewers. The ACCC has a critical role to play in ensuring that this fight occurs on fair terms.”

Google and Facebook face intensifying pressure around the world, including a European Commission probe.