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On 8 December 2020, Australia unveiled its plans to make Facebook and Google to pay to the local media outlets for the news content. Australia has become the first country in the world to do so.
Treasurer Josh Frydenberg mentioned that the two technology giants have to finalise the money they will be paying to the local publishers along with broadcasters for the content that exists on their platforms.
Elaborating on the topic, Frydenberg said that if the social media giants were unable to strike a deal, a government-appointed arbitrator would decide how much money they would pay to the local news outlets.
Boasting about the same, Frydenberg said that this was a kind of first in the world and it would draw global attention.
He maintained that the legislation would ultimately nurture the media landscape in Australia.
source: Shutterstock
Will Easton, Facebook Australia managing director, mentioned that the company would evaluate the legislation and participate through the forthcoming parliamentary process with the aim of reaching a workable framework to aid the Australian news ecosystem.
Most of the countries have stood by as advertisers redirect spending to Facebook and Google, and starve newsrooms of their main revenue source, and thereby bringing in widespread shutdowns and job losses.
According to Frydenberg, of late, regulators have begun to test their power to take a lead in the two mega-corporations, who take more than four-fifths of the Australian online advertising spending between them.
Both Google and Facebook can discuss the clicks value that their platforms direct to the news websites.
Image source: Shutterstock
Google to pay US$1 billion to international publishers
Meanwhile, Google said in October it had plans to pay US$1 billion to publishers globally for their news services over the next three years.
The new product called Google News Showcase will be rolled out first in Germany followed by Brazil and France. In Germany Google has partnered with German newspapers like Der Spiegel, Die Zeit, Stern, whereas in Brazil, Google tiedup with Folha de S. Paulo, Band and Infobae. Google will then partner with six French newspapers and magazines.
Michael Miller, chairman, News Corp Australia, said that the law was a big step to achieve among Australian news media companies and the global tech giants.
In May this year, News Corp stopped printing more than 100 newspapers across Australia, quoting falling advertising.
