Australia Advances Plan to Make Facebook, Google Pay for News -- Update

   By Mike Cherney 
 

SYDNEY--Australia will introduce new legislation this week that will effectively require Facebook Inc. and Alphabet Inc.'s Google to pay for news, though officials say the proposal includes some concessions to the tech giants after they publicly campaigned against the plan.

Australia's effort is being closely watched around the world as other countries grapple with how to compel tech companies to compensate local publishers. Google and Facebook collect ad revenue based on visits to their sites and can increase their traffic by including links to news articles.

"This is comprehensive legislation that has gone further than any comparable jurisdiction in the world," Australian Treasurer Josh Frydenberg said Tuesday. "It will ensure that our media landscape is more sustainable and more viable than otherwise would have been."

A Google spokesperson said the company hadn't seen the latest version of the legislation and didn't offer further comment. Facebook said it will review the legislation once it is introduced in parliament.

"We'll continue to engage through the upcoming parliamentary process with the goal of landing on a workable framework to support Australia's news ecosystem," said Will Easton, managing director of Facebook Australia.

The legislation creates a mandatory code that would require publishers and the tech companies to enter binding arbitration if a deal on compensation can't be reached. However, if the parties reach a deal voluntarily, they can agree to waive certain parts of the code. Mr. Frydenberg said officials would prefer for publishers and tech companies to strike deals without relying on the code.

Officials said the latest version of the code--the result of three years of work--included some changes compared with a draft from earlier this year. One change involves a provision that would require tech companies to notify publishers of major algorithm changes that can affect where news articles rank in search results. The latest version of the code shortened the notice period of algorithm changes to 14 days from 28 days.

Google and Facebook have argued in a series of blog posts and statements that the previous version of the code was unworkable. They have said that publishers benefit because links on social media and search results send many readers directly to their sites. At one point, Facebook said if the code is enacted, it would stop allowing people in Australia to share local and international news on Facebook and Instagram, the photo-sharing platform it owns.

Although the tech companies have resisted paying for content in the past, they have softened that stance recently and have inked some deals around the world.

Mr. Frydenberg said the latest version of the code wouldn't apply to Instagram and YouTube, Google's video-sharing service. It would only apply to Facebook's newsfeed feature and Google search, though other services could be added later.

Media companies in Australia, including News Corp, owner of Dow Jones Newswires and The Wall Street Journal publisher Dow Jones & Co., have supported the proposed regulations, saying they will prevent social-media giants from walking away from negotiations over payment.

News Corp Australasia Executive Chairman Michael Miller said Tuesday that the legislation is a significant step forward.

"All we have ever sought is a fair commercial outcome and fair payment for the valuable news content our journalists create," Mr. Miller said. "I believe this code puts in place the framework for this to be achieved."

Write to Mike Cherney at [e-mail]

(END) Dow Jones Newswires

December 08, 2020 01:28 ET (06:28 GMT)

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