Meta’s market domination raises red flags for ACCC

However, the regulator added that Meta faced weak competitive constraints from other social media services, which could reduce innovation and consumer choice. It noted that despite Meta serving a higher volume of advertisements per hour of time than some other social media platforms, and having increased ad impressions across its platforms, the number of users has continued to increase.

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The watchdog has also flagged concerns around the growing cohort of influencers – who cultivate an audience and earn revenue, often by promoting brands and products – saying they needed to improve disclosure of sponsored posts to ensure consumers were making informed choices when purchasing products online.

“Lack of disclosure may mislead consumers who may be unaware that endorsements by influencers are paid for,” it said. “In early 2023, the ACCC launched a sweep which identified 81 per cent of influencer posts as potentially misleading endorsements and testimonials.”

In its report, the ACCC recommended measures such as an economy-wide prohibition against unfair trading practices, and a new power to make mandatory codes of conduct for designated digital platforms to protect and promote competition.