SYDNEY: Australia finalized plans on Tuesday to make Facebook and Google pay its media outlets for news content, a world-first move aimed at protecting independent journalism that has been strongly opposed by the Internet giants.
Under laws to go to parliament this week, Treasurer Josh Frydenberg said the Big Tech firms must negotiate with local publishers and broadcasters how much they pay for content that appears on their platforms. If they can鈥檛 strike a deal, a government-appointed arbitrator will decide for them.
鈥淭his is a huge reform, this is a world first, and the world is watching what happens here in Australia,鈥� Frydenberg told reporters in the capital Canberra.
鈥淥ur legislation will help ensure that the rules of the digital world mirror the rules of the physical world ... and ultimately sustain our media landscape.鈥�
The law amounts to the strongest check of the tech giants鈥� market power globally, and follows three years of inquiry and consultation, ultimately spilling into a public brawl in August when the US companies warned it may stop them offering their services in Australia.
Facebook Australia managing director Will Easton said on Tuesday the company would review the legislation and 鈥渆ngage through the upcoming parliamentary process with the goal of landing on a workable framework to support Australia鈥檚 news ecosystem.鈥�
A representative for Google declined to comment, saying the company had yet to see the final version of the proposed law.
Until recently, most countries have stood by as advertisers redirect spending to the world鈥檚 biggest social media website and search engine, starving newsrooms of their main revenue source and bringing widespread shutdowns and job losses.
But regulators are starting to test their power to rein in the two mega-corporations which take more than four-fifths of Australian online advertising spending between them, according to Frydenberg. This year, a French regulator told Google to negotiate with publishers over payment for news content, and the matter remains before the courts.
鈥淚t鈥檚 both very ambitious and very necessary,鈥� said Denis Muller, an Honorary Fellow at University of Melbourne鈥檚 Center for Advancing Journalism, referring to the Australian law.
鈥淭aking their news content without paying for it, in exchange for a very questionable reward of 鈥榬each鈥�, seems to be a very unfair and uneven and ultimately democratically damaging arrangement.鈥�
News Corp. Australia executive chairman Michael Miller said the law was 鈥渁 significant step forward in the decade-long campaign to achieve fairness in the relationship between Australian news media companies and the global tech giants.鈥� In May, News Corp. stopped printing more than 100 Australian newspapers, citing declining advertising.
In changes to draft legislation announced earlier this year that might favor the tech companies, the final version of the law would not affect news content distributed on Facebook鈥檚 Instagram subsidiary or Google鈥檚 YouTube. Facebook and Google would also be allowed to include in the negotiations the value of clicks their platforms directed to news websites.
But Frydenberg added to the list of media companies with whom the tech giants must negotiate, saying public broadcaster the Australian Broadcasting Corp. and specialist public broadcaster SBS would be included, along with dominant private sector outlets like News Corp. and Nine Entertainment Co. Holdings Ltd.