Published: Sat, January 30, 2021
Economy | By

Google exit would hurt Australian tech sector - RN Breakfast

Google exit would hurt Australian tech sector - RN Breakfast

While the Interactive Advertising Bureau Australia (IAB) is still reviewing points raised in the report, its chief executive, Gai Le Roy, was pleased to see many of its industry driven education initiatives, tech standards and guidelines have been referenced as providing knowledge and transparency on how digital advertising trading operates.

In a massive escalation of its opposition, she said the trillion-dollar United States firm would no longer allow Australians to use its search engine if the government enacted the code as proposed.

The Australian Competition and Consumer Commission (ACCC) released its interim report from its Digital Advertising Services Inquiry, launched in February past year following its digital platforms inquiry.

News Corp Australia, the Australian Associated Press, Guardian Australia and Nine all confirmed they had held unsuccessful negotiations with Google and Facebook. "We look forward to working with the ACCC as it finalises its advice to Government by August 2021".

The report found Google's grip on the market was strengthened by its "unrivalled" data collection, which it prevented its rivals from accessing.

The banner reads "Google Search is in the news".

"This includes Google very often acting on behalf of both publishers and advertisers for the same ad sale across the ad tech supply chain, while also selling its own ad inventory", he said.

"This is a market that doesn't have much transparency at all", he said.

"So (it's) a really important market (with) a lot of problems". Google's two DSPs (Google Ads and Display & Video 360) are estimated to have collectively held a 60% to 70% share of revenue for DSP services in 2019, while Google Ad Manager, which also operates as an SSP, is believed to have held a 50% to 60% share of revenue in 2019.

Google, a multinational technology company, is reportedly reviving plans to launch its news website, News Showcase, over the next few weeks in Australia.

"Ad tech is a competitive market with low barriers to entry".


The government has drafted legislation based on the watchdog's media code to force the USA tech giants pay Australian news businesses fair compensation for their content. Well, now, Google has added a large noticeable banner to the top of the search results in Google Australia for any query.

Speaking at a senate inquiry into the code on Friday, Ms Silva conceded the company had only paid $59 million in corporate tax a year ago, despite a gross revenue of $4.8 billion.

Sims said the threat was not unexpected but claimed it may prove to be nothing more than "brinkmanship".

"I know that sounds pretty full on, but it's true", she says.

Sims proposed Australia produce rules to handle conflicts of interest and also to stop Google from possibly preferring its own companies.

"Right now, no website or search engine pays to connect people to other sites through links", Silva said in the undated post. Other tech firms may be added if they are deemed big enough.

The move comes after last Friday's dramatic threat from Ms Silva, who said Google would have no choice but to make Google Search unavailable in Australia if the government succeeded in implementing the new media code.

The ACCC may also recommend the introduction of a voluntary industry code to verify ad tech services and increase the availability of data, and the implementation of common transaction IDs and common user IDs to help with tracing across the supply chain.

"The ACCC report is consistent with actions being taken around the world to support an open and transparent ad tech market".

The senate inquiry resumes on Monday.

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