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Summary
- Microsoft has unveiled its full support to the proposed media laws in the Australian parliament.
- The tech player is ready to step in by expanding its search engine, if any fallout occurs between Google and Australia.
The Australian government’s ongoing efforts for implementation of new media rules has taken a new turn. The rules proposed by the government are said to support the local businesses amid increasing global competition.
With the new rules, the government is seeking to control the monopoly of tech giants like Google and Facebook over the media industry. First of its kind, the new rules would require these tech companies to compensate traditional media businesses for using their content on the platforms, if they get a green signal in the parliament.
The latest twist in the saga is Microsoft’s support to the government plans. Last month, Google threatened to turn off its search engine in Australia over the proposed legislation. However, Microsoft has swooped in to support the proposed laws. Microsoft has stated that it would never threaten to leave the Australian market.
Image source: © Micka | Megapixl.com
Also read: Google to disable search in Australia if media code becomes legal
Microsoft Gets Tremendous Opportunity to Capture Google's Market in Australia
Microsoft is well-positioned to tap the opportunity if any fallout occurs between the country and Google. The recent statements are hinting at US technology giant’s intentions to take up Google's market share in the country. Currently, Google is the dominating market player, with around 90% of the market share, while Microsoft has no hold in this market.
Read here: What is monopolistic competition?
Microsoft also acknowledged the challenges being faced by the media and journalism sector in Australia due to the over-controlling power of digital companies.
According to Microsoft President Brad Smith, the company is in consent with the government’s plan, which is vital to protect the democracy of the country. He further highlighted that Microsoft has always supported the findings and solutions of Australian Competition and Consumer Commission (ACCC).
Microsoft is ready to support small media firms with the transfer of their advertising business to Bing with no costs. The company has also unveiled investment plans to ensure that its product is competitive.
Google and Facebook Not Impressed With The Proposed Laws
Google and Facebook have already shown their disagreement with the Australian government on this issue, highlighting the proposed laws are unworkable. The tech giants are also fearing that these laws could be a trendsetter for other countries, thus a threat to their business model.
While Google has stated that it has no option but to withdraw its services, Facebook has also threatened to withdraw some key services from Australia, if this law sees the light of day.
Hitting back on Google, Australian Prime Minister had earlier stated that the government did not respond to threats. Recently, he also mentioned that Microsoft was ready to expand its search engine Bing in Australia if Google removed its services.
Earlier, the US also expressed its displeasure over the proposed laws and hinted towards a counter US-Australia trade deal. Must read: Scrap media laws imposing Google and Facebook to pay to local media outlets: US
