Australia to force Meta, Google to pay for news
Australia to force Meta
Australia has taken a significant step toward regulating tech giants by introducing a groundbreaking News Media Bargaining Code, which aims to force companies like Meta (Facebook) and Google to pay Australian news publishers for their content.
Specifics of the Law: The law requires Facebook and Google to negotiate payment arrangements with Australian news publishers in exchange for displaying their content. Mandatory Negotiations Binding Arbitration – If no agreement is reached, an independent arbitrator will decide on a fair payment.
Penalties for Non-Compliance – Failure to comply could result in fines of up to A$10 million per violation or 10% of annual revenue in Australia.
Background & Reactions:
The Australian government argued that platforms profit from journalism without fairly compensating creators when it passed the law in 2021 to address the power imbalance between tech giants and news publishers. Google initially threatened to pull its search engine from Australia but later struck deals with major publishers like News Corp and Nine Entertainment.
Facebook temporarily imposed a news sharing ban in Australia out of protest, but the decision was later reversed as a result of law changes. Global Impact:
Australia's move has inspired similar legislation in other countries, including Canada’s Online News Act and the EU’s Digital Markets Act, which also seek to ensure fair compensation for news publishers.
Current Status (2024):
Google has signed multiple deals with Australian media companies.
In some nations, Meta has stopped paying for news, claiming that its users don't care about it. However, in Australia, it remains subject to the bargaining code.
This law represents a major shift in how digital platforms interact with news media, setting a precedent for other nations to follow. Would you like updates on how this affects other countries?
Australia will force Meta and Google to pay for news shared on their platforms under a new scheme unveiled Thursday, threatening to tax them if they refuse to strike deals with local media Traditional media companies the world over are in a battle for survival as precious advertising dollars are hoovered up online.
Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.
Communications Minister Michelle Rowland stated to reporters, "The rapid growth of digital platforms in recent years has disrupted Australia's media landscape and is threatening the viability of public interest journalism."
"It is important that digital platforms play their part. They need to support access to quality journalism that informs and strengthens our democracy."
Social media platforms with Australian revenue of more than US$160 million a year will be taxed a still-to-be-decided figure earmarked to pay for news.
But they can offset the tax -- or avoid paying it entirely -- if they voluntarily enter into commercial agreements with Australian media companies.
Australia to force Meta, Google to pay for news
Australia will force Meta and Google to pay for news shared on their platforms under a new scheme unveiled Thursday, threatening to tax them if they refuse to strike deals with local media.
Traditional media companies the world over are in a battle for survival as precious advertising dollars are hoovered up online.
Google News LinkFor all latest news, follow The Daily Star's Google News channel.
Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.
Communications Minister Michelle Rowland stated to reporters, "The rapid growth of digital platforms in recent years has disrupted Australia's media landscape and is threatening the viability of public interest journalism." "It is important that digital platforms play their part. They need to support access to quality journalism that informs and strengthens our democracy."
Social media platforms with Australian revenue of more than US$160 million a year will be taxed a still-to-be-decided figure earmarked to pay for news.
But they can offset the tax -- or avoid paying it entirely -- if they voluntarily enter into commercial agreements with Australian media companies.
The Australian government indicated the parent companies of Google, Facebook and TikTok would be covered by the tax, which will come into effect next year.
Officials said Elon Musk's X would likely escape because its domestic revenue was too small.
Hundreds of Australian journalists have lost their jobs in recent years as newspapers are shuttered and media companies downsize.
In 2021, Google and Meta struck a string of deals with Australian newsrooms worth a combined US$160 million.
But Meta has indicated it will not renew its deals when they expire in March, arguing that news makes up a tiny portion of its traffic.
The tax will be designed to stop the tech giants from simply stripping news from their platforms, something Meta and Google have done overseas in the past.
A Meta spokesperson on Thursday said Australia was "charging one industry to subsidise another".
Latest salvo
The spokesperson said the "proposal fails to account for the realities of how our platforms work".
Australia's University of Canberra has found that more than half the country uses social media as a source of news.
Supporters of such laws argue that tech titans attract users with news stories and devour online advertising dollars that would otherwise go to struggling newsrooms.
Google and Facebook owner Meta have pushed back against efforts in other jurisdictions to compensate news outlets.
Google began removing links to some websites in California earlier this year after the state said it would charge them for news traffic. Facebook and Instagram have blocked news content in Canada to avoid paying media companies.
It is the latest salvo in Australia's efforts to reign in the tech giants.


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