Swiss media watchdog warns of platform companies' growing power over democracy

The Swiss Federal Media Commission issued comprehensive recommendations today addressing the increasing concentration of market and opinion-shaping power held by large technology platforms, marking a significant shift in Switzerland's approach to digital platform regulation.

According to the commission's report released on January 14, 2025, platforms like search engines, news aggregators, social networks, and video-sharing services have become indispensable for communication in society, yet their growing influence over public discourse remains largely unexamined in public debate.

The commission's analysis reveals how platform companies leverage network effects, lock-in mechanisms, and data ownership to establish substantial market power. Through algorithmic recommendation systems, these platforms make autonomous decisions about which content appears in users' feeds, search results, and AI-generated responses.

The impact on public communication has proven substantial. According to the commission's findings, social media already serves as the primary news source for one-third of Swiss residents aged 18-24. The commission's report indicates that commercial and political objectives can be incorporated into algorithmic system design, potentially undermining opinion and media diversity.

The document outlines how media companies face increasing dependency on platforms for both advertising revenue and audience reach. Publishing companies must accept platform conditions for selling their online advertising space while simultaneously competing with platforms for advertising clients. Media organizations have reported dramatic decreases in advertising income as revenue flows to these platforms.

Beyond market dynamics, the commission identifies broader societal implications. Platform companies maintain influential positions relative to public administration, politics, education, and academic research. A significant portion of software solutions and IT infrastructure in Swiss public administrations relies on products from global technology companies that also operate online platforms.

The commission recommends developing competition law to address platform market characteristics and implementing ex-ante regulation of large platforms to ensure fair competition. This includes functional separation requirements, interoperability mandates, and data portability obligations.

For algorithmic systems, the recommendations call for mandatory risk impact assessments examining effects on fundamental rights and society. Platforms would need to report on risk mitigation measures and provide transparency about recommendation system parameters.

The commission advocates establishing independent competency centers and supervisory bodies with adequate resources and expertise. It also emphasizes platforms' obligation to grant researchers and civil society access to data, enabling oversight in the public interest.

Regarding artificial intelligence regulation, the recommendations propose accountability requirements throughout the AI value chain to prevent risks to fundamental rights and society. The commission suggests Switzerland consider ratifying the Council of Europe's AI convention while examining sector-specific approaches.

The recommendations arrive as the Swiss Federal Council develops a consultation draft for federal legislation on communication platforms. According to the commission, while this represents an important step, additional measures addressing market and opinion power concentration remain necessary.

The commission's report emphasizes that just as media concentration creates both economic and democratic challenges, the combination of market and opinion power in platform companies warrants comprehensive policy responses protecting public discourse and democratic processes.

This analysis presents one of Switzerland's most detailed examinations of platform power to date, offering concrete proposals for maintaining democratic safeguards in an increasingly platform-dominated communication landscape.