The Australian government wants Facebook and Google to sign onto what they call a "News Media Bargaining Code," which will require tech companies to pay news organizations when news content is "included" on the digital platforms. The exact price to be paid is meant to be negotiated by media companies and digital platforms. The rationale offered by Australian antitrust regulators is that there is a "bargaining power imbalance" between tech and media companies, hence the need for government action to get negotiations started.
You may be tempted to read that paragraph again. Don't bother. The government's argument is euphemistic and its reasoning is obscure. The most obvious problem is that neither Facebook nor Google "include" news content on their platform. The dispute is not about intellectual property theft; all tech companies are doing is linking to news sites. Facebook allows users to share links. Google offers links through its general search function as well as its Google News search service. The upshot is that the Australian government wants Facebook and Google to pay news organizations for the privilege of linking to their content.
Unsurprisingly, Facebook has said if it is forced to pay it will simply block Australians from sharing news links. Google might also shut down its Google News service—that's what happened when a similar policy was introduced in Spain in 2014.
Much like the U.S., the Australian media sector is in economic freefall. And like the U.S., both Australian progressives and conservatives have been regarding tech companies with increasing skepticism. We usually think of anti-tech skepticism as ideological—conservatives are at odds with socially liberal Silicon Valley types while progressives look at Silicon Valley as the new robber barons. But in Australia, it is strikingly obvious how the economic collapse of traditional media causes anti-tech sentiment.
reason.com
You may be tempted to read that paragraph again. Don't bother. The government's argument is euphemistic and its reasoning is obscure. The most obvious problem is that neither Facebook nor Google "include" news content on their platform. The dispute is not about intellectual property theft; all tech companies are doing is linking to news sites. Facebook allows users to share links. Google offers links through its general search function as well as its Google News search service. The upshot is that the Australian government wants Facebook and Google to pay news organizations for the privilege of linking to their content.
Unsurprisingly, Facebook has said if it is forced to pay it will simply block Australians from sharing news links. Google might also shut down its Google News service—that's what happened when a similar policy was introduced in Spain in 2014.
Much like the U.S., the Australian media sector is in economic freefall. And like the U.S., both Australian progressives and conservatives have been regarding tech companies with increasing skepticism. We usually think of anti-tech skepticism as ideological—conservatives are at odds with socially liberal Silicon Valley types while progressives look at Silicon Valley as the new robber barons. But in Australia, it is strikingly obvious how the economic collapse of traditional media causes anti-tech sentiment.
Australia’s Confused Tech Regulators Are Cracking Down on Google for Using Links
If the new trustbusters get their way, tech platforms might be forced to pay money to traditional news outlets for the privilege of linking to their content.
reason.com