Internet Giants Google and Facebook Forced to Pay Publishers For News by the Australian Government

Highlights

The australian government unveiled on Friday that it plans to force Google and Facebook for news content from now on, another productive action to recover from it’s critical economy. Josh Frydenberg, Treasurer of Australia , said on Friday that the mandatory code of conduct is to supervise relations between the struggling news industry and the United States social media.

An ‘Unprejudiced’ Code of Conduct

According to Frydenberg , the ‘world-leading’ conduct aims to even the media field.

“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 in Melbourne.

In the newly drafted code, Google and Facebook will have to negotiate with the media business to use their content. The code also requires transparency of algorithms and ranking of content in the news feeds and advertising. Penalties up to ten million dollars will be included if the companies are found with any form of breaches in code.

https://twitter.com/JoshFrydenberg/status/1289054209094987776?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet

Frydenberg warned that the code would prohibit any ‘discrimination” against the media by Google and Facebook. He added that code ensures that the news companies are paid fairly for their contents.

“We are not seeking to protect traditional media companies from the rigour of competition or technological disruption,” he wrote. “Rather, to create a level playing field where market power is not misused, companies get a fair go and there is appropriate compensation for the production of original news content.

Arguments that followed after the proposal

Several media companies of the country had put so much effort and influence for the drafting of the code. Michael Miller, Executive chairman of the News Corp , said on Friday that it was a  ‘watershed moment’ in efforts to end ‘free-riding’ by the tech companies.

Responding to the proposal, Google’s local managing director, Mel Silva, said the company was “deeply disappointed” and the new move would hinder innovation in the field.

“The government’s heavy-handed intervention threatens to impede Australia’s digital economy and impacts the services we can deliver to Australians,” she said.

Will Easton ,Facebook’s managing director for Australia and New Zealand said in a statement.

“We believe that strong innovation and more transparency around the distribution of news content is critical to building a sustainable news ecosystem.”

The draft code after a month long consultation before being debated in the parliament and is expected to be implemented within a year.

Subscribe

We never spam, we hate it too.