Beijing: Rupert Murdoch’s News Corp. Australia asked the country’s regulators to push for the break up or effective separation of Google’s digital advertising business because of the damage it is inflicting on the country’s media industry.
News Corp. made the request in an 80-page filing with the Australian Competition and Consumer Commission following a preliminary report from the regulator, recommending a new or existing watchdog should investigate and monitor how large digital platforms rank and display adverts and news. In the document, Murdoch’s company criticised the existing practices and power of Google-parent Alphabet Inc. and Facebook Inc., calling for more regulatory oversight.
“The market power that Google and Facebook occupy makes it difficult even for sophisticated and experienced businesses like News Corp. Australia to negotiate any terms of business,” the company said in its filing.
A Google spokesman didn’t immediately have a comment on the filing.
News Corp.’s suggested remedies include “requiring digital platforms to make certain divestments; specifically, that Alphabet Inc’, the parent company of Google, should divest Google Search or Google Ad Manager” and “requiring functional separation and access to data on fair, reasonable and non-discriminatory (FRAND) terms: requiring the functional separation of each component of Google’s ad tech functions, including Google Search, and access to the data Google holds on FRAND terms.”
The ACCC, in its preliminary report, said Google and Facebook had become the “dominant gateways between news media businesses and audiences,” leading to a loss of advertising revenue and ultimately cuts in the number of journalists who could play an important role in “exposing corruption and holding governments, companies, powerful individuals and institutions to account.”
The December report contained 11 preliminary recommendations, including preventing Google’s internet browser Chrome from being installed as a default browser on mobile devices, computers and tables and preventing Google’s search engine from being installed as a default search engine on internet browsers. The report also identified eight areas for further analysis as the inquiry continues.
“The ACCC considers that the strong market position of digital platforms like Google and Facebook justifies a greater level of regulatory oversight,” Chairman Rod Sims said in a statement at the time.