In a response to the Australian Competition and Consumer Commission’s (ACCC) digital advertising inquiry, Google has proposed a “collaborative approach” to benefit consumers and Australian businesses.
Digital advertising is a subtle area that affects everyone online. According to Google, a healthy digital advertising ecosystem is only achieved when everyone benefits. As this market is critical to innovation and competition, the ACCC must not stifle such development.
As such, Google has identified several factors that it is asking the ACCC to consider before releasing its final recommendations. This includes:
1. Balancing the interests of different stakeholders. It is important to recognise that several parties are engaged throughout the digital ad space, namely, consumers, advertisers, and publishers. Legislative reform cannot be specifically targeted at Google without acknowledging that other parties may be affected, particularly consumers.
2. Supporting supply chain transparency. When dealing with eCommerce, supply chain management is critical to improving interactions with buyers and sellers. Google has recently shared how they display advertising to businesses, showcasing that publishers receive the majority of revenue.
3. Protecting innovation and competition. Through the ACCC’s intervention, vertical integration may be impacted, in turn hurting consumers. Regulatory change should not impact parties flowing from Google’s advertisement structure.
4. Recognising the highly dynamic and multifaceted nature of digital advertising. Google has identified that the ACCC’s inquiry only focused on web-based advertising which only factors in a narrow segment of general digital ads. It is important that the ACCC considers other markets such as mobile and TV advertisement.
5. Avoiding inconsistent and overlapping regulation. Google has brought attention to the implications of the ACCC’s inquiry to privacy legislation. According to Google, several of the ACCC’s recommendations will impact consumer privacy, extending beyond data portability and interoperability.
Google has proposed that further cooperation is necessary to establish a regulatory regime that benefits all. This will involve further deliberation with stakeholders and a collaborative approach throughout the development of the ACCC’s digital ad inquiry.