The ACCC is examining the state of competition within the social media sector in the latest reports from its five-year Digital Platform Services Inquiry.
The competition watchdog will look into barriers to entry and expansion faced by new social media platforms, and hurdles and costs faced by consumers and businesses when they try to switch services.
In addition, the ACCC will looking at the impact of scams on consumers and the risk of being exposed to misleading or deceptive content by businesses through social media.
“Social media has become an essential tool for many businesses as they seek to widen their customer bases and engage and communicate with consumers, and for individual consumers to connect and communicate with each other and access critical information,” ACCC Chair Gina Cass-Gottlieb said.
“We want to hear from businesses and consumers about their experiences with social media services, including with Facebook, Instagram, Twitter, TikTok and Snapchat. We hope to examine trends in user preferences and engagement over time, and consider how users choose social media services.”
In 2019, an earlier report from the Digital Platforms Inquiry concluded that Facebook “had substantial market power in the provision of social media services in Australia.”
This report will update the ACCC’s assessment of this.
“We are also eager to receive feedback on the barriers to entry and expansion for social media services in Australia, and if new entrants such as TikTok have changed the competitive landscape for social media services in Australia,” Cass-Gottlieb said.
This issues paper will inform the ACCC’s sixth report, due to be submitted to the Treasurer by March 31, 2023.