The Digital Industry Group, which also counts Twitter and Verizon Media among its founders, urged the Government to consider the "unintended consequences" raised by the recommendations and undertake broader consultation before any major reforms are announced.
The Australian Competition and Consumer Commission had recommended a code of practice to regulate the digital ad industry and to govern issues around inaccurate information, with the Australia Communications and Media Authority to handle enforcement.
In a submission to the public consultation on the final report, released by the Australian Competition and Consumer Commission, DIGI said it had issues with numerous recommendations among the 23 made by ACCC chief Rod Sims in the final report.
platform (such as content signalling or removal) may be considered as intrusive and inappropriate on a private messaging platform".
"An appropriate intervention on one platform (such as partnerships with third-party fact-checkers) may be cost-prohibitive and unscalable for another. Therefore, the idea of a one-size-fits-all industry code of conduct is problematic in relation to disinformation, as it does not take into account variables that impact content moderation in this area."
The organisation also objected to the ACCC's recommendation on a mandatory takedown code for enforcing copyright on digital platforms.
"DIGI members dedicate significant resources to processing copyright removal requests. The proposed 'mandatory industry code' would represent a significant departure from the globally accepted legal standards and norms for issuing take-down notices that are relied upon by online service providers and content creators around the world," the submission said.
It added that insisting on platforms to “proactively identify and prevent the distribution of copyright-infringing content online” would create a number of problems.
"First of all, it relies on detection technologies with ample room for error, particularly when deployed in real time," the submission stated. "Furthermore, there are few commercially available solutions and, where they exist, they function for some content types but not others.
"Secondly, the development of product-customised technology can be cost-prohibitive industry-wide."
DIGI did not approve of the changes recommended by the ACCC to merger law, saying: "It is disappointing to see this recommendation was retained in the final report, with a slight expansion of scope, without addressing the concerns raised by many in the technology industry.
"It is also concerning that the evidence base that the ACCC DPI final report provides for this recommendation is a chapter that does not consider the technology industry at large, nor analysis of the implications previously raised about this recommendation."
The Federal Government has said that it would give its final response to the report by the end of the year.