ACCC caught between privacy risks and competition concerns in data brokers probe
Experts are concerned about concentration in the shadowy data broking sector. But measures to alleviate this will create enormous privacy risks and could make things worse.
Cartels — no, not those involving drug lords, but the competition-law kind — remain an ongoing priority for the competition regulator, the Australian Competition and Consumer Commission. Cartel behaviour can lead to fines in the tens of millions for companies and, where criminal conduct is alleged for individuals, a risk of imprisonment.
Think price-fixing, bid-rigging, mutual understandings or agreements and resultant harms to competition, which in turn are damaging to consumers.
It's high stakes stuff. So when a submission to the ACCC's still to be released inquiry into the opaque sector of data brokers raises the question of cartels, it's notable.
Data brokers collect information on individuals from their activity on the web, package it and then sell it to the likes of banks and insurers. Some experts are alarmed by how much sensitive information these companies can have on people, and who that data can be bought by.
