The Australian government has passed a landmark law aimed at making tech giants Google and Facebook pay for news content on their platforms. The legislation, known as the news code, had been fiercely opposed by the US tech giants, but was passed with new amendments that make it possible for Facebook and Google to avoid being subject to the code. The law is seen as a possible test case for similar regulation in other countries.
The law incentivises tech giants and news organisations to negotiate payment deals between themselves. If such talks fail, digital platforms could be dragged into independent arbitrations. The Australian Competition and Consumer Commission (ACCC) says publishers have had little negotiating power until now because they are so reliant on tech monopolies like Google and Facebook. The code also forces tech platforms to give notice to news publishers of changes to their algorithms.
Facebook and Google had argued that the law “fundamentally” misunderstands how the internet works. However, both companies have now committed to paying lucrative sums to some big Australian publishers outside of the code. Google has agreed deals with local media companies including Nine Entertainment and Seven West Media worth an estimated A$60m ($47m; £34m) in total. It has also signed a deal with Rupert Murdoch’s News Corporation.
The amended legislation was passed in the House of Representatives on Thursday, after earlier going through the Senate. The government argues that the law prescribes a “fairer” negotiation process between the parties, as it gives news organisations more leverage. The ACCC says the law will help to address the imbalance in negotiating power between tech giants and news publishers.
Facebook had blocked all news content to Australians over the row, but reversed its decision this week after negotiations with the government. The company has since signed at least one deal – with Seven West Media – and is in talks with other Australian news groups. Google had threatened to withdraw its primary search engine from Australia, but ultimately agreed to pay for news content.
The law requires the government to consider a platform’s existing contributions to journalism – such as commercial deals with publishers – before applying the code to them. This means Facebook and Google could escape the arbitration process entirely. The government also has to give the platform a month’s notice if it is considering applying the code to them.
The tech firms argue they already help news publishers by driving traffic back to news sites from their platforms. Facebook and Google simply help people find news content in the first place, the platforms say. The amended law is seen as a compromise between the government and the tech giants, and may have implications for similar regulation in other countries.
Key points
- Australia passes world-first law making Google and Facebook pay for news content
- The law incentivises tech giants and news organisations to negotiate payment deals
- Facebook and Google have committed to paying lucrative sums to some big Australian publishers outside of the code
