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February 24, 2021

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Here is the news: Australia, Facebook reach a deal

Facebook said yesterday it will lift its ban on Australians sharing news on its platform after it struck a deal with Australia鈥檚 government on legislation that would make digital giants pay for journalism.

Australian Treasurer Josh Frydenberg and Facebook confirmed that they have agreed on amendments to proposed legislation to require the social network and Google to pay for Australian news they feature.

Facebook鈥檚 cooperation is a major victory in Australian efforts to make the two tech giants pay for the journalism that they use.

The company had blocked Australian users from accessing and sharing news last week after the House of Representatives passed the draft law late on Wednesday.

The amended version of the proposed legislation would give digital platforms one month鈥檚 notice before they are formally designated under the code. That would give those involved more time to broker agreements before they are forced to enter the binding arbitration arrangements required by the proposed law.

Initially, the Facebook news blockade cut access to government pandemic, public health and emergency services, sparking public outrage.

A statement yesterday by Campbell Brown, Facebook鈥檚 vice president for news partnerships, said the deal allows the company to choose which publishers it will support, including small and local ones.

鈥淲e鈥檙e restoring news on Facebook in Australia in the coming days. Going forward, the government has clarified we will retain the ability to decide if news appears on Facebook so that we won鈥檛 automatically be subject to a forced negotiation,鈥 Brown said.

Frydenberg described the agreed upon amendments as 鈥渃larifications鈥 of the government鈥檚 intent. He said his negotiations with Facebook chief Mark Zuckerberg were 鈥渄ifficult.鈥

鈥淔acebook and Google have not hidden the fact that they know that the eyes of the world are on Australia and that is why they have sought to get a code here that is workable,鈥 Frydenberg said, referring to the proposed News Media Bargaining Code.

The code was designed to curb the bargaining dominance of Facebook and Google in their negotiations with news providers by requiring a negotiation safety net through an arbitration panel.

The digital giants would not be able to abuse their overwhelming negotiating positions by making take-it-or-leave-it offers to news businesses. In case of a standoff, the panel would make a binding decision.


 

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