Tech giants to face greater scrutiny

Google and Facebook face increased regulation in Australia, after the federal government indicated it would back recommendations of an ACCC report.

Today, the Australian Competition has released its report following an 18-month inquiry into digital platforms, making 23 recommendations covering privacy, media regulation, competition and consumer protections.

The ACCC said the major digital platforms had distorted the ability of businesses to compete on their merits in advertising, media and a range of other markets.

The competition watchdog also had issues in relation to the significant level of personal data being collected without proper consent.

Among its recommendations, the ACCC said suggested targeted grants to support local journalism of about $50 million a year, and said the Australian Communications and Media Authority should be given powers to address the regulatory imbalance between traditional media and digital media.

The government said will consult with stakeholders over the next three months and act on the recommendations by the end of the year.

Treasurer Josh Frydenberg backed increased regulation on companies such as Google, Facebook, Twitter and Amazon.

"They need to be held to account and their activities need to be more transparent," he said.

"Whether it be print, radio or television, content generated by journalists and owned by media companies is being displayed on social media and search engines, often without a negotiated agreement covering how data and content is monetised and shared."