Australia will force American technology giants Facebook and Alphabet’s Google to pay Australian media for news content. This is a landmark move to protect independent news, which will receive global attention.
Finance Minister Josh Frydenberg (Josh Frydenberg) said that Australia will become the first country to require Facebook and Google to pay for news content provided by media companies. This is a royalty system that will be used in It became law this year.
Fredenberg told reporters in Melbourne: “This is a fair choice for Australian news media companies. This is to ensure that we increase competition, enhance consumer protection and a sustainable media landscape.”
“There is no moment more important than the future of the Australian media industry.”
This move comes at a time when the tech giants resisted calls for increased global regulation, and the day after Google and Facebook accused US lawmakers of abusing market power in congressional hearings.
After investigating the state of the media market and the power of US platforms, the Australian government notified Facebook and Google to negotiate voluntary agreements with media companies in the second half of last year.
These negotiations are of no avail. Canberra now says that if an agreement cannot be reached through arbitration within 45 days, the Australian Communications and Media Authority will formulate legally binding terms on behalf of the government.
Google said the regulation ignores the “billions of clicks” it sends to Australian news publishers each year.
Google Australia and New Zealand managing director Mel Silva (Mel Silva) said: “This sends a worrying message to companies and investors that the Australian government will intervene rather than let the market operate.”
“It will not help, and it will not solve the basic challenge of creating a business model suitable for the digital age.”
Facebook did not immediately respond to a request for comment.
“Unfair and destructive”
Media companies such as Rupert Murdoch’s News Corp.’s News Corp Australia and other media companies lobby the government to force U.S. companies to enter the negotiating table despite the prolonged decline in advertising revenue .
Michael Miller, Executive Chairman of News Corp Australia, said in a statement: “While other countries are talking about the unfair and destructive behavior of tech giants, the Australian government… is taking the world’s first action.”
A 2019 study estimated that in the past 10 years, Australia has lost 3,000 news items in the past 10 years due to the loss of advertising revenue from traditional media companies to Google and Facebook, while news content did not pay anything. Job position.
According to Friedenberg, in Australia, for every 100 Australian dollars (about 5380 rupees) spent on online advertising, excluding classified ads, nearly a third goes to Google and Facebook.
Other countries have tried and failed to force the tech giants to do it.
Publishers in Germany, France and Spain have pushed for the passage of national copyright laws, which force Google to pay licensing fees when publishing news digests.
In 2019, Google stopped showing news summaries from European publishers in the search results of its French users, and Axel Springer, Germany’s largest news publisher, allowed search engines to visit the website. Run its news summary after the plunge.
© Thomson Reuters 2020
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