ACCC launches enquiry into social media companies

“The Australian Competition and Consumer Commission (ACCC) has launched an enquiry into the state of competition in social media, a market dominated by a handful of foreign firms, as well as potential consumer issues and the supply of advertising.”

“The changing nature of social media services, which now include marketplaces, eCommerce, news and gaming, and new competition issues warrant an update to the 2019 findings,” the regulator said.

96 per cent of adults used a communication or social media website or app last year, according to consumer research cited in the new issues paper.

The advertising systems that monetise user engagement will also be scrutinised, with the regulator asking several questions about the inner workings and impact of notoriously murky online advertising technology.”

As a part of the enquiry, the ACCC also invites businesses and consumers to share their social media experiences. The ACCC plans to use these data to analyse user preference and engagement over different social media platforms.

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