New Law in Australia Says Facebook and Google Must Pay for News
Under a new Australian law, Facebook and Google must now pay news companies for content promoted on their platforms. (Tech2)
Australia passed a law that forces technology companies to compensate news outlets for content promoted on their platforms this February. The first of its kind worldwide, the law, called the News Media Bargaining Code, marked the beginning of a new relationship between tech companies and the publishing industry. In passing this legislation, Australia seeks to reduce Google and Facebook’s growing market power and protect its domestic news outlets. In protest against the law, Facebook removed content from news agencies in Australia, though it later reversed this decision after the country revised the code.
This law marks the latest measure in a long-standing dispute between publishers and tech companies. Google and Facebook have eaten away at the advertisement revenue of news companies, which accused the tech giants of taking advantage of their content. In response, Google and Facebook said that they provide valuable information to the public in the form of news provided free of charge by news websites. Lawmakers around the world have sought resolutions that would make Google and Facebook have to pay in order to redistribute such content.
Both Facebook and Google opposed the law in its original form, which stipulated that if media outlets could not reach a financial deal through individual or collective bargaining, a government-appointed arbitrator would settle on a final price. Experts have said that such a provision forces a ruling that heavily favors both parties while avoiding the possibility of a middle-ground agreement.
Facebook subsequently banned news content from its Australian platform, which the company had threatened to do if the law were passed. However, users met the removal with outrage and sheer confusion as emergency services, state health agencies, and other central provisions saw themselves affected by Facebook’s action. Google also threatened to shut down its services in Australia, though it has since struck numerous commercial agreements with publishing companies such as Rupert Murdoch’s NewsCorp.
Because of the backlash, Australia amended the News Media Bargaining Code to allow for parties to have a two-month mediation period before appointing a government arbitrator to resolve deals. Shortly thereafter, Facebook restored access to news pages in Australia, although they still possess the power to decide whether or not news will appear on their platform.
Many countries view Australia’s law as a precedent that could set the standard for how the world tackles the growing power of technology corporations. Countries such as the United Kingdom and Canada are among those considering a similar trajectory to that of Australia.