Displaying items by tag: tech giants
The Australian Competition and Consumer Commission (ACCC) called for new regulations on Facebook, Google and other tech behemoths which could have far-reaching ramifications on their money-making procedures and their ability to choose which content consumers would consume.
The country’s competition watchdog devised some recommendations which, if confirmed, would be among the most restrictive towards tech giants. These recommendations were created in an effort to limit the power of these tech giants due to global concerns of their influence and various other issues such as anti-trust, privacy abuse and the role they play in spreading discriminatory content and misinforming the public.
The ACCC plans to issue its final report by the end of June, following its 18-month inquiry into the issue. This report is expected to comprise of various proposals pertaining to controls that will be imposed on tech giants which handle a large quantity of personal data to use for marketing purposes such as the use of algorithms to coordinate which advertisements to display to customers, which tailored search results will appear and other tailored content.
In the lengthy preliminary report which was issued in December last year, the ACCC raised concerns about the market power of tech companies like Facebook and Google and how their operations are characterized by a “lack of transparency”, especially with regards to the use of our data.
The report, which was initiated by the conservative government, read,: “We are at a critical point in considering the impact of digital platforms on society.” It also shed some light on the impact the tech giants had on Australia’s new industry.
In fact, it was found that since 2014, two tech titans were receiving a huge fraction of the revenues generated from digital advertising which resulted in the number of newspapers and online journalists falling by over 20 per cent.
“While the ACCC recognizes their significant benefits to consumers and business, there are important questions to be asked about the role the global digital platforms play in the supply of news and journalism in Australia,” read the report.
The competition watchdog stated that it wanted to make sure the big firms did not “favor their own business interests, through their marketing power and presence across multiple markets”.
“There are also issues with the role of digital platforms in determining what news and information is accessed by Australians, how this information is provided, and its range and reliability.”
Rod Sims, ACCC chairman, stated that regulatory authorities In the UK, Europe and the U.S. were monitoring the outcome of their inquiry very closely as they are all still in the process of determining their policies regarding the issue.
Many are of the belief that the ACCC’s recommendations are impractical and a little radical.
Prime Minister Scott Morrison’s government has already begun to take action against the growing influence of Big Tech. This includes enabling criminal penalties for social media execs which allow the spread of violent or hateful content on their platforms.
Head of DIGI, the lobbying group formed by various tech behemoths to deal with the regulator, Sunit Bose, said, “We obviously need really clear rules for the internet that protect privacy, safety, the economic and social benefits of technology while also protecting competition and innovations.”
She also argued that the Australian regulator’s recommendations would hurt Big Tech, as well as start-ups and smaller companies that lack the resources to deal with the new regulations.
“the prospect of having to disclose such sensitive information will serve as a deterrent to global digital companies and start-ups initiating or expanding their operation in Australia,” she said.
France is leading a push to increase the taxation of tech giants in Europe, backed by Germany, Italy and Spain. The countries’ finance ministers said in a joint letter that they want multinational technology companies like Google and Amazon to be taxed based on their revenues in Europe, rather than only profits as now.
Other European nations have expressed their support for the tax change, Reuters reported, because of the low tax they receive under the current international rules. Some nations are missing out on their share because tech giants are often taxed on profits booked by subsidiaries in Ireland, a low-tax haven, even though the revenue generated came from other EU countries.
In the letter written by the four European finance ministers it says, “We should no longer accept that these companies do business in Europe while paying minimal amounts of tax to our treasuries.”
The letter, seen by Reuters, was sent to the European Union’s Estonian presidency with the bloc’s executive Commission in copy. It was written by French Finance Minister Bruno Le Maire, Wolfgang Schaeuble of Germany, Pier-Carlo Padoan of Italy, and Luis de Guindos of Spain.
In the letter the ministers express the need to create an “equalization tax” on turnover that would bring taxation to the level of corporate tax in the country where the revenue was generated. The ministers said, “The amounts raised would aim to reflect some of what these companies should be paying in terms of corporate tax.”
The ministers will reportedly present their case to other EU counterparts at a meeting in Tallinn from Sept. 12-16. A discussion has been scheduled by the EU’s current Estonian presidency to consider the concept of “permanent establishment” with the goal of being able to tax companies on where they generate their revenue, not only where they have their tax residence.
France has faced setbacks trying to obtain payments for taxes on tech giants’ activities in the country, hence its move to put pressure on the EU to change tax rules. In July a French court ruled that Alphabet’s Google should pay 1.1 billion euros ($1.3 billion) in back taxes because it has no “permanent establishment” in France but ran its operations there from Ireland.