Google and Facebook could be forced to disclose algorithms by Australia's competition watchdog

The regulator recommends creating a branch with more powers to monitor if tech firms use their algorithms to give precedence to their own products over that of rivals

Google and Facebook could be compelled by Australia's competition regulator to disclose details of their secretive algorithms under a new push for tech regulation in Australia.

On Friday, the Australian Competition and Consumer Commission (ACCC) published the final report on its 18-month inquiry into the impact of Facebook, Google, and other digital platforms on the day-to-day lives of the people in Australia.

The report was released by Josh Frydenberg, the Treasurer of Australia, and Paul Fletcher, the communications minister. It makes a number of bold recommendations that, it suggests, would improve media competition in Australia while enforcing tougher regulations on major digital platforms.

"These companies are among the most powerful and valuable in the world," Frydenberg said. "They need to be held to account and their activities need to be more transparent."

The 619-page document sets out the agency ' s findings on multiple issues, ranging from alleged anti-competitive activities and inconsistencies in media regulation to copyright issues and privacy concerns. The inquiry also explored the concerns around so-called hate content, disinformation, and the extent of user-data collection by tech firms.

The watchdog recommends creating a new Digital Platforms Branch under its own supervision that would probe how tech firms use their algorithms to match ads with viewers, and whether they are using those algorithms to give precedence to their own products over that of rivals.

The ACCC said the new branch would enable it to pro-actively monitor the activities of the digital platforms and to probe a potential anti-competitive behaviour.

The report also recommends implementing a code of conduct, which would require regulatory approval to control how tech firms can use users' content.

The report comes as pressure on social media oligopolies is increasingly ramped up. Last week, the US Federal Trade Commission (FTC), imposed a $5 billion fine on Facebook over its egregious violation of the terms of a 2012 order. That order had been made following earlier privacy violations by Facebook.

Facebook also faces two other antitrust probes, one led by the FTC (that started in June), and another by the US Department of Justice.

The Justice Department announced last week that it was launching a new antitrust review of major online platforms to determine whether they are unlawfully stifling competition in the market.

The move is intended to explore "widespread concerns that consumers, businesses, and entrepreneurs have expressed about search, social media, and some retail services online", according to the agency.

Earlier this month, several members of Congress questioned representatives from major tech firms at an antitrust hearing in the House Judiciary Committee.

The representatives of Google, Facebook, Amazon and Apple were grilled on the size and scope of their businesses, and whether they are preventing the development of competition in the industry.

They all claimed - not surprisingly - that their companies have faced stiff competition from multiple rival firms in their respective industries.