Google has welcomed the opportunity to consult with the federal government over the next 12 weeks as it finalises its response to the ACCC Digital Platforms Inquiry.
The final report has 23 recommendations, including establishing a code of conduct between big tech and tarditional media, and an update to merger laws.
Mel Silva, Google Australia MD, says the company's search advertising business, which makes the bulk of its ad business, benefits advertisers, along with news publishers.
“In this way, advertisers can reach the audiences that matter to them, at a time that is relevant to the consumer. For example, if someone searches for a new car, a car ad is often relevant. These services are provided without charge to consumers,” Silva says.
“Google’s advertising platforms also help publishers make money online and drive traffic to their websites. In 2018, Google referred more than 2 billion free clicks to Australian news sites, which helps to drive subscriptions and ad revenue. We also provide a platform to help publishers to show ads on their own sites. This is used by thousands of news publishers both in Australia and around the world, and publishers retain approximately 70% of the ad revenue that is generated.”
“Through this combination of referral traffic and ad revenue, Google provides significant value to publishers. Ad-supported models have always been part of the news industry, whether print or digital, and we share their interest in keeping the internet free and open. We work closely with the news industry and will continue to do so as consumer expectations and technology evolve.”
One of the report’s recommendations was to give the Australian Communications and Media Authority (ACMA) responsibly to make sure news media businesses are fairly compensated for content used by Google and Facebook.
It also recommended the government provide “stable and adequate” funding for public broadcasters to ensure the continuation of public interest journalism as media organisations’ business model remains weakened by the arrival of big tech.
Silva also addressed privacy issues, which was highlighted as a concern in the report.
“For privacy to be real, people need to have clear, individual choices around their data. This is why we believe in giving people transparency, choice and control,” Silva says.
“Transparency means easy access and full visibility of your data and preferences, and the assurance that Google does not sell personal information to third parties. Choice means the user should get to decide how their information is used and deleted. Control is the ability to manage your settings and features depending on your preferences.”
Silva also says that Google still competes with other mediums for advertising dollars.
“The tech industry is dynamic and drives innovation that gives consumers better products, services and choices. For example, when consumers are looking for information online, they go to a range of places in addition to Google,” she says.
“For furniture and electrical products they might go to Harvey Norman. For homes, they might go to Domain or Realestate.com. For reviews they might go to TripAdvisor.
“When it comes to advertising, search advertising is one of many online and offline channels in which advertisers invest. We compete directly for advertising dollars with other digital channels, as well as television, print, radio and outdoor advertising.”
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