Rupert Murdoch says business practices of Google and Facebook warrant scrutiny

News Corp’s executive chairman has accused the tech giants of censorship, collusion and a lack of transparency that has left other companies and consumers worse off.

News Corp executive chairman Rupert Murdoch.

News Corp executive chairman Rupert Murdoch has expressed deep concern over the corporate behaviours of Google and Facebook, accusing the tech giants of censorship, collusion and a lack of transparency that has left other companies and consumers worse off.

In his opening remarks to News Corporation’s annual meeting of stockholders, Mr Murdoch called for “significant reform” of some of the business practices employed by the digital platforms.

“For many years, our company has been leading the global debate about Big Digital. What we have seen in the past few weeks about the practices at Facebook and Google surely reinforces the need for significant reform,” he said.

“There is no doubt that Facebook employees try to silence conservative voices and a quick Google News search on most contemporary topics often reveals a similar pattern of selectivity — or to be blunt, censorship.

“Secondly, the collusion between the two companies on ad tech as alleged in the Texas Attorney-General’s complaint is extraordinary.

“Let us be very clear about the consequences of that digital ad market manipulation: obviously, publishers have been materially damaged, but companies have also been overcharged for their advertising and consumers have thus paid too much for products.”

It is alleged that in 2017, the two tech giants struck “an unlawful agreement” to give Facebook “information, speed and other advantages” in the ad auctions it ran, in exchange for the social network to cede ground to Google in the online ad space.

The antitrust suit, brought by Texas Attorney-General Ken Paxton, is ongoing.

Google and Facebook deny any wrongdoing.

On Thursday (AEST), Mr Murdoch said the digital companies’ censorship and alleged collusion warrants greater scrutiny.

“Both of these issues highlight the fundamental need for algorithmic transparency. The idea falsely promoted by the platforms that algorithms are somehow objective and solely scientific is complete nonsense,” he said.

“Algorithms are subjective and they can be manipulated by people to kill competition and damage other people, publishers and businesses.”

Earlier this year News Corp — and dozens of other publishers worldwide — signed deals with Google and Facebook, which will see the tech giants pay for the news content they use on their platforms.

Mr Murdoch also observed that American politics was at a critical juncture, and said that conservative forces — and, indeed, Donald Trump himself — must look ahead, not back, if the country is to progress and prosper.

“The current American political debate is profound, whether about education or welfare or economic opportunity. It is crucial that conservatives play an active, forceful role in that debate, but that will not happen if President Trump stays focused on the past,” he said.

“The past is the past, and the country is now in a contest to define the future.”

Mr Murdoch told News Corp stockholders that the 2021 fiscal year had been the most profitable since 2013, when the media major was split into two publicly traded companies.

“We are expanding our reach, revenue and continuing to deliver profit growth,” Mr Murdoch said.

“These have been testing times but we emerge more confident than ever about our future.

“We will certainly not rest on our laurels. We will intensify our efforts to increase audiences and enhance profitability.”

News Corp chief executive Robert Thomson said the company’s “strong cash generation has given us increased optionality”.

Mr Thomson said News Corp’s Australian subscription television company Foxtel was on a “decidedly upward trajectory”, pointing to the 40 per cent rise in paying subscribers in 2020/21, and the 10 per cent jump in revenue for the fiscal year.

“We have attractive options for a growing and contemporary business with a tangible upside,” Mr Thomson said.

News Corp CEO Robert Thomson.