WORLD
Australia passes law to make Google and Facebook pay for news

Australia’s law forcing Google and Facebook to pay for news is ready to take effect, though the laws’ architect says it will take time for the digital giants to strike media deals.

The Parliament on Thursday passed the final amendments to the so-called News Media Bargaining Code agreed between Treasurer Josh Frydenberg and Facebook chief executive Mark Zuckerberg on Tuesday.

In return for the changes, Facebook agreed to lift a ban on Australians accessing and sharing news.

Rod Sims, the competition regulator who drafted the code, said he was satisfied the amended legislation would address the market imbalance between Australian news publishers and the two gateways to the internet.

Google has already struck deals with major Australian news businesses (Jeff Chiu/AP)

© Provided by PA Media Google has already struck deals with major Australian news businesses (Jeff Chiu/AP)

“All signs are good,” Mr Sims said.

“The purpose of the code is to address the market power that clearly Google and Facebook have. Google and Facebook need media, but they don’t need any particular media company, and that meant media companies couldn’t do commercial deals,” the Australian Competition and Consumer Commission chair added.

The rest of the law had passed in Parliament earlier, so it can now be implemented.

Google has already struck deals with major Australian news businesses in recent weeks including News Corp and Seven West Media.

MELBOURNE, AUSTRALIA - FEBRUARY 18: In this photo illustration the 9News Facebook site is seen blank, on February 18, 2021 in Melbourne, Australia. Facebook has banned publishers and users in Australia from posting and sharing news content as the Australian government prepares to pass laws that will require social media companies to pay news publishers for sharing or using content on their platforms. (Photo by Robert Cianflone/Getty Images)© 2021 Getty Images MELBOURNE, AUSTRALIA – FEBRUARY 18: In this photo illustration the 9News Facebook site is seen blank, on February 18, 2021 in Melbourne, Australia. Facebook has banned publishers and users in Australia from posting and sharing news content as the Australian government prepares to pass laws that will require social media companies to pay news publishers for sharing or using content on their platforms. (Photo by Robert Cianflone/Getty Images)

Mr Frydenberg said he was pleased to see progress by Google and more recently Facebook in reaching commercial deals with Australian news businesses.

But Country Press Australia, which represents 161 regional newspapers across the country, has raised concerns that tiny publications outside large cities might miss out.

Mr Sims said he was not surprised the platforms would strike deals with large city businesses first.

“I don’t see any reason why anybody should doubt that all journalism will benefit,” Mr Sims said.

Mark Zuckerberg standing in front of a crowd posing for the camera: The amendments to the legislation came after dialogue between the Australian government and Facebook chief Mark Zuckerberg (Niall Carson/AP)

© Provided by PA Media The amendments to the legislation came after dialogue between the Australian government and Facebook chief Mark Zuckerberg (Niall Carson/AP)

“These things take time. Google and Facebook don’t have unlimited resources to go around talking to everybody. I think this has got a long way to play out,” he added.

Chris Moos, a lecturer at Oxford University’s Business School, said the latest amendments amounted to a “small victory” for Mr Zuckerberg.

Mr Moos said the legislation would likely result in small payouts for most Australian news publishers. But Facebook could again block Australian news if negotiations broke down.

The legislation was designed to curb the outsized bargaining power of Facebook and Google in their negotiations with Australian news providers.

The digital giants would not be able to abuse their positions by making take-it-or-leave-it payment offers to news businesses for their journalism. Instead, in the case of a standoff, an arbitration panel would make a binding decision on a winning offer.

Source: Pa.media

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