Google and Facebook told to pay for news
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Global digital platforms Google and Facebook will be forced to pay for news content in Australia, the government said yesterday, as the coronavirus pandemic causes a collapse in advertising revenue.
Treasurer Josh Frydenberg said the Australian Competition and Consumer Commission would release in late July draft rules for the platforms to pay fair compensation for the journalistic content siphoned from news media.
Frydenberg said he believed that Australia could succeed where other countries, including France and Spain, had failed in making Google and Facebook pay.
鈥淲e won鈥檛 bow to their threats,鈥 Frydenberg told reporters. 鈥淲e understand the challenge that we face. This is a big mountain to climb. These are big companies that we are dealing with, but there is also so much at stake, so we鈥檙e prepared for this fight.鈥
The ACCC had attempted to negotiate a voluntary code by which the global giants would agree to pay traditional media for their content.
But the parties couldn鈥檛 agree on 鈥渢his key issue of payment for content,鈥 Frydenberg said.
Communications Minister Paul Fletcher said Australia would take a different approach other than Europe, relying on competition law rather than copyright law.
Google and Facebook said they had been working to the ACCC November deadline to negotiate a voluntary code.
鈥淲e鈥檙e disappointed by the government鈥檚 announcement, especially as we鈥檝e worked hard to meet their agreed deadline,鈥 Facebook Managing Director for Australia and New Zealand Will Easton said in a statement.
鈥淐OVID-19 has impacted every business and industry across the country, including publishers, which is why we announced a new, global investment to support news organizations at a time when advertising revenue is declining,鈥 he added, referring to a US$100 million investment in the news industry announced in March.
Google said it had engaged with more than 25 Australian publishers to get their input on a voluntary code.
鈥淲e have sought to work constructively with industry, the ACCC and the government to develop a code of conduct.鈥
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