Australia will force Facebook and Alphabet Inc’s Google to pay local media outlets for news content in a world-first move
The decision comes as the tech giants fend off calls around the world for greater regulation, and a day after Google and Facebook took a battering for alleged abuse of market power from US lawmakers in a congressional hearing.
The Australian government has said it plans to give Google and Facebook three months to negotiate with Australian media businesses fair pay for news content.In releasing a draft of a mandatory code of conduct on Friday, the government aims to succeed where other countries have failed in making the global digital giants pay for news siphoned from commercial media companies.
Google said Australia's draft code was a heavy-handed step that could impede the digital economy.Treasurer Josh Frydenberg said Google and Facebook would be the first digital platforms targeted by the proposed legislation but others could follow.
Australian media landscape at stake“It’s about a fair go for Australian news media businesses, it’s about ensuring that we have increased competition, increased consumer protection and a sustainable media landscape,” Frydenberg said.“Nothing less than the future of the Australian media landscape is at stake with these changes,” he added.
If the US-based platforms could not agree with the Australian media businesses on pricing after three months, arbitrators would be appointed to make a binding decision, the draft said.The draft will be open to consultation until August 28, with the legislation to be introduced to Parliament soon after, Frydenberg said.
As well as payment, the code covers issues including access to user data and transparency of algorithms used to rank and present media content.Breaches of the code could attract penalties of up to 10 percent of the platform’s annual turnover or a $7.2 milllion (10 million Australian dollar) fine.
READ MORE:Tech titans under fire in Congress over monopoly allegationsThreatens to impede digital economy – GoogleGoogle Australia and New Zealand managing director Mel Silva said the code discounts the significant value Google provided in free clicks on publishers' content.
“Our hope was that the code would be forward-thinking and the process would create incentives for both publishers and digital platforms to negotiate and innovate for a better future, so we are deeply disappointed and concerned the draft code does not achieve this," Silva said in a statement.
“Instead, the government’s heavy-handed intervention threatens to impede Australia’s digital economy and impacts the services we can deliver to Australians,” Silva added.Facebook issued a terse one-line response that hinted it could reconsider its activities in Australia if the proposals were implemented.
"We are reviewing the government's proposal to understand the impact it will have on the industry, our services and our investment in the news ecosystem in Australia," said Will Easton, Facebook's local manager.Frydenberg said the motive was not to protect Australian businesses from competition or disruption but to ensure they are paid fairly for original content.
READ MORE:Australian regulator sues Google over expanded personal data useDecline in advertising revenueMedia companies including News Corp Australia, a unit of Rupert Murdoch's News Corp, lobbied hard for the government to force the US companies to the negotiating table amid a long decline in advertising revenue.
"While other countries are talking about the tech giants' unfair and damaging behaviour, the Australian government ... (is) taking world-first action," News Corp Australia Executive Chairman Michael Miller said in a statement.A 2019 study estimated about 3,000 journalism jobs have been lost in Australia in the past 10 years, as traditional media companies bled advertising revenue to Google and Facebook which paid nothing for news content.
For every A$100 spent on online advertising in Australia, excluding classifieds, nearly a third goes to Google and Facebook, according to Frydenberg.Other countries have tried and failed to force the hands of the tech giants.Publishers in Germany, France and Spain have pushed to pass national copyright laws that force Google to pay licensing fees when it publishes snippets of their news articles.
In 2019, Google stopped showing news snippets from European publishers on search results for its French users, while Germany’s biggest news publisher, Axel Springer, allowed the search engine to run snippets of its articles after traffic to its sites plunged.
Alphabet profits slumpGoogle parent Alphabet reported a rare drop in revenue and profit in a quarterly update that nonetheless topped market expectations.Profit slumped some 30 percent to $6.96 billion from a year for the online giant that relies on digital advertising for most of its income.
Revenues dipped two percent to $38 billion, as chief financial officer Ruth Porat said; "We continue to navigate through a difficult global economic environment." Read more: TRT World »
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Australian lawmakers are not independent of foreign powers and TNCs. Law makers won't even force foreign companies to pay taxes in Australia, let alone force them to pay for theft of local media content.
Australia to make Facebook, Google pay for news in world first Australia will force U.S. tech giants Facebook Inc and Alphabet Inc’s Google to pay Australia n media outlets for news content in a landmark move to protect independent journalism that will be watched around the world. Do they have to pay when a report is untruthful? Now, That's a NIFE An excellent idea.
Australia Unveils Its Plan to Make Facebook and Google Pay for NewsMedia companies in Australia will be able to seek payment from Facebook and Google for news articles that are posted on their platforms, according to new rules. Then the only news disseminated would be the news that falls under the umbrella of corporate profitability by cherry picking stories compatible with there agenda. Or influence entire outlets to tailor their news towards 3rd party interests risking site based competing realities. So....the logical thing to do from facebooks perspective is to block ALL links from newspapers and media.....and then CHARGE the newspapers and companies to let people share their articles across the network. This could backfire spectacularly. Best idea for greedy companies that have monopolized the market selfishly. They should also pay for stolen photos in the galleries and stolen personal composed songs that google claims unknown musician.
Australia to require Google and Facebook to pay for news contentThe Australia n government said on Friday it plans to give Google and Facebook three months to negotiate with Australia n media businesses fair pay for news...
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What Congress should ask CEOs of Apple, Amazon, Facebook, and Google - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. profgalloway How can you help us.
CEOs of Amazon, Apple, Facebook and Google to face congressional antitrust grillingThe CEOs will face lawmakers Wednesday for a hearing on digital competition that could have cataclysmic impacts on an industry largely unmoored by regulators. Why does Mark look like a a robot? Я буду рад,если уйдут вот так ! Here we go again the jealous government looking to get paid off by the four best tech companies in the world. As usual the government will screw things up like they did to Microsoft for 20 years. Real stupid government !!!!