Media shares spike ahead of release of ACCC report into Google, Facebook

Media shares have spiked ahead of tomorrow’s release of the ACCC’s report into the big tech platforms.

Seven West Media shares jumped almost 10pc ahead of the release of the ACCC’s report into digital platforms. Picture: AAP

Shares in media companies, including News Corp, Nine Entertainment and Seven West Media, jumped ahead of the imminent release of the competition regulator’s report into digital platforms, including Google and Facebook.

As the broader market flirted with an all-time high, Seven West Media shares jumped 9.41 per cent to 46.5 cents, Nine Entertainment rose 2.8 per cent to $2 and shares in News Corp, publisher of The Australian, rose 2.46 per cent to $19.99.

The Morrison government is set to release the Australian Competition and Consumer Commission’s long-awaited final report on digital platforms tomorrow, which urges people to understand what big data is all about in an attempt to get in front of its use.

Treasurer Josh Frydenberg is expected to endorse the report, which has been with his department for about a month, with any legislative changes to come later.

The release of the ACCC’s final report, eight months after its preliminary findings, comes as the US Justice Department is preparing a major review on the competitive impact of tech giants, like Google and Facebook. It is expected to look at the practices of online platforms that dominate internet search, social media and retail services.

The ACCC’s landmark Digital Platforms Inquiry preliminary report, which looked at the impact of tech giants on media and advertising markets, found that Google and Facebook had “substantial market power”.

As a result, the competition regulator made 11 recommendations, including a proposal that would preven­t Google’s internet browser Chrome being installed as a default on mobile phones, computers and tablets. It also wants Google’s search engine to stop being installed as a default on internet browsers.

At the time, ACCC chairman Rod Sims said five investigations were underway into potential misuse of market power and breaches of consumer law but he declined to expand on who or what was being examined.