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ACCC's Facebook, Google probe may prompt stifling regulation, Australasian policy advisers warn

By James Panichi ( February 14, 2019, 04:19 GMT | Insight) -- Australia’s world-first study of digital platforms such as Facebook and Google is underestimating the costs and consequences of regulatory intervention in online markets, according to a joint study by Australia and New Zealand’s top economic advisers. The research paper by the Australian Productivity Commission and the New Zealand Productivity Commission also says competition regulators are vulnerable to “regulatory capture” by special interest groups attempting to avoid competition — for example, hotel associations calling for the regulation of the Airbnb accommodation platform.Australia’s world-first review of digital platforms such as Facebook and Google is underestimating the costs and consequences of regulatory intervention in online markets, according to a joint study by Australia and New Zealand’s top economic advisers....

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