In its to the Convergence Review's Interim Report, Google argued that the proposed content standards regime was "unworkable" for services such as YouTube and that subjecting companies such as Google to local content standards would "create real disincentives for internet industries to invest in Australia".

Facebook in its challenged the Report's review committee to explain why it should be burdened with content regulation, and further argued that "criteria that focus on user base, Australian audience, control and operating revenue for defining if a service provider qualifies as a 'content service enterprise' seem difficult to apply in an online environment, particularly for social media sites".

While the report suggests that only current, major Australian media companies will be subject to Australian content requirements, the Report's clarification raises questions about the ability of the government to come to grips with the full consequences of media, communications and information technology convergence.

For example, Australia's major telcos -- Telstra and Optus -- are increasingly offering 'television-like' services to Australian consumers, yet would appear to not be classified as CSEs.

Late last week Optus lost its appeal to be allowed to continue its which enables users to record sports matches and view them on a device of their choice. Telstra also offers 'television-like' services through its stake in and via its IPTV service .