The dispute between the Australian government with Google and Facebook has aroused interest around the world.
A bill, the first of its kind in the world, it seeks that the technological giants pay the media by spread your news content.
It aims to offset the advertising revenue that the media no longer receives in favor of US technology companies.
If approved, the law could have global consequences for the large internet firms, but also for the way news is accessed online.
The response from the internet giants was immediate.
Facebook has implemented a restriction on news content in Australia, so that residents of that country can no longer view what i posted with the media.
Google initially threatened to leave Australians without its services, although in recent days it has reached agreements with several local media companies.
These are 6 keys to understanding what is happening.
1. What what started everything
For a long time, in different In parts of the world there has been concern over the dominance of the news market by technology companies, to the detriment of the media.
As in many countries, Google is the dominant search engine in Australia and the government has described their service as an almost essential utility , with little competition in the market.
AND Social networks are also a key source of information.
According to a report by 2018 of the Reuters Institute, the 52% of Australians said they use l social networks as a source of news.
Facebook ranked first , followed by YouTube and Facebook Messenger .
But in 2019, an Australian government regulator launched an investigation into the impact of Google and Facebook on media competition and advertising.
The Australian Commission’s investigation Competition and Consumers (ACCC) found a power imbalance between technology companies and the media.
Before This, the regulator recommended introducing a code of conduct which, it considered, would level the playing field.
In July of last year, the government Non-Australian released a bill to enforce the code, prompting threats from Facebook and Google to pull their services out of the country.
two. What is news code?
The project asks technology companies to pay for the content of the media , although it does not define its value.
The law would allow news companies to negotiate en bloc with technology companies the content that appears in their news sources and search results.
If the negotiations fail, the matter would be arbitrated by the Australian Media and Communications Authority.
The fines could be about $ 7 million for non-compliance or the 11% of the company’s local turnover.
The government says that the code will initially focus on Google and Facebook, but could be expanded to other technology companies.
The law has broad political support and has been approved by the lower house of the Australian Parliament.
3. Why do they see the need for the law?
The Australian government has argued that tech giants should pay theaters writing a “fair” amount for the journalism they do.
In addition, they argue that financial support is necessary for the Australian news industry to survive, as Strong media are seen as vital to democracy.
The media, including Rupert Murdoch’s News Corp Australia, have lobbied hard for the government forces internet firms to sit at the negotiating table.
This while the media faces a prolonged drop in income from advertising.
Facebook, however, argues Note that “the exchange of value between Facebook and publishers is in favor of publishers,” according to the manager of the firm for Australia and New Zealand, William Easton.
He considers that companies communication networks generate hundreds of millions of dollars in revenue: “Publishers voluntarily choose to publish news on Facebook , as it allows them to sell more subscriptions, increase their audience and increase advertising revenue” , points out.
But Australia’s competition regulator says that for every $ 160 dollars spent on online advertising, Google keeps $ 73, Facebook $ 28 Y the rest is shared among others.
Meanwhile, Google’s profits have increased notably in the same period, reaching more than $ 549, 10 million dollars at the level worldwide in 2019.
4. Facebook’s reaction
Mark Zuckerberg’s company no longer allows Australian users share or watch news.
The social media giant said the proposed law “fundamentally misinterprets the relationship between our platform and publishers.”
Facebook said the legislation had left them “facing a tough choice: trying to comply with a law that ignores the realities of this relationship or stop allowing news content on our services in Australia. ”
“ With heavy hearts, we are choosing the latter, ”they said.
5. Google’s response
Google had threatened to remove its Australian search engine if the law was approved.
- Why is Google threatening to leave Australia and what are the implications for the rest of the world
But now it says that agreed pay Rupert Murdoch’s News Corp for content on news sites across its media empire.
As part of the three-year agreement, News Corp indicated that it would collaborate with Google on a subscription platform, share advertising revenue, and invest in video journalism on YouTube.
Google has also announced Established agreements with other Australian media companies
It is not clear what actions Google will take if the proposed law is passed.
6 . Could ntar a world precedent?
Some Australian politicians and media experts believe that this regulation could be expanded to other countries.
Australian Senator Rex Patrick predicted that this legislation “will be extended to the whole world.” Addressing Google, he asked them, “Won’t they get out of all markets? Or yes? ”
Unlike Google and Facebook, Microsoft has supported the bill.
“The code reasonably attempts to address the imbalance in bargaining power between digital platforms and Australian news companies,” the company noted this month.
In Europe there is a different attempt , but similar.
A controversial new European Union copyright regulation says search engines and “news aggregators” should pay the media for links .
In France, publishing houses reached a deal with Google, but only a handful of these deals have been signed with large French newspapers, making it very different from the far-reaching Australian plans, which are much stricter.
And there have been other differences between governments and large technology firms, as some countries or blocs such as the European Union have sought to regulate technology companies such as Google or Facebook.
Europe is looking to tackle illegal and harmful content on online platforms and regulate the use of customer data, while in the US companies have been questioned in Congress on whether they have become too dominant.
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