Australia’s rivalry regulator said on Monday it would investigate whether U.S. online giants Facebook and Alphabet’s Google had break ined the news media to the detriment of publishers and consumers.
Like their rivals globally, Australia’s accustomed media companies have been squeezed by online rivals, as advertising dollars contain followed eyeballs to digital distributors such as Google, Facebook and Netflix.
The administration ordered the probe as part of wider media reforms, amid mature concern for the future of journalism and the quality of news following years of decreasing profits and newsroom job cuts.
“We will examine whether platforms are harrying market power in commercial dealings to the detriment of consumers, media text creators and advertisers,” Australian Competition and Consumer Commission (ACCC) Chairman Rod Sims powered in a statement.
The inquiry also would study how Facebook and Google drove to “fully understand their influence in Australia,” he added.
The probe pass on have power to demand information from businesses and hold hearings. It is due to cause its final report in 18 months.