“The Australian parliament on Thursday passed a new law designed to force Alphabet Inc’s Google and Facebook Inc to pay media companies for content used on their platforms… The legislation was watered down, however, at the last minute after a standoff between the government and Facebook culminated in the social media company blocking all news for Australian users [for 5 days].” Reuters
“Facebook took particular issue with a baseball-style arbitration clause in Australia's new media code, which would see a government-appointed panel set the payout rate if the parties can't reach a deal… On Monday, the [Australian] government released four amendments to the media code. The amendments basically say that the new code, which is still expected to pass, may not apply to Facebook if it can broker enough deals with publishers… The government essentially gave Facebook more time to broker deals with publishers before the law takes effect.” Axios
The right is critical of Australia’s policy but also cautions against Facebook’s power over society.
“Anyone and everyone working in the industry knows that we've been advised, pushed, and cajoled to create pieces that get featured in Google News or go viral on Facebook. Such pieces achieve hundreds of thousands to millions of views and make our employers, the publishers, very fat and happy sums of money as a result of the advertising that surrounds our deathless prose. That is, the publishers not only desire but positively lust after the services of the two platforms. They are now demanding to be paid for inclusion in what benefits them so much…
“This has been tried before. Spain passed a law insisting that Google News must pay newspapers. Google News no longer exists in Spain. Germany tried to insist that publishers could ask for payment for inclusion. Google agreed to include only those who did not ask for payment. All publishers took the traffic and not the payments… if there's going to be any money flow at all, it should be from the newspapers to the platform providers.”
Tim Worstall, Washington Examiner
“This is the corporate bosses of news organizations trying to have their cake, eat their cake, and have someone else give them money for both. There is no real basis for saying that letting people share content and links — for free — damages newspapers: it is a bit like saying pub landlords should pay newspapers if their punters discuss a news article at the bar…
“But if that’s the argument publishers are making, they have to stick to it: outlets like Facebook can choose to pay up, or prevent news articles being shared on their turf. Demanding that your stories be shared and that you should be paid for the privilege is nothing more than a shakedown.”
James Ball, Spectator USA
“All in all, it actually doesn’t sound like a bad compromise. Zuckerberg had already demonstrated that he was willing to take his ball and go home, so Australia was going to have to make some concessions. But the government didn’t want to look like they were entirely surrendering and just ditch the legislation because Facebook demanded they do so. This has the look and feel of a free market solution, so we probably shouldn’t be complaining too much. And it will very likely provide a model for Canada and the EU nations presently considering similar moves against Facebook.”
Jazz Shaw, Hot Air
“Is there a better approach? In the U.S., a newspaper lobby calling itself the News Media Alliance, along with friends in Congress, has argued for waiving our indiscriminate and Procrustean antitrust prejudice against cooperative acts by competitors. Let U.S. media outlets join forces to control the terms under which their content is searchable and linkable. If they so choose, let them create their own ad platform to compete with Google and Facebook. The truth is, media companies have always been free to block the internet ad giants from linking to their stories, but it would be suicide to do so.”
Holman W. Jenkins, Jr., Wall Street Journal
Some argue, “It’s correct to be wary of more government regulations because what government bureaucrats come up with is often ineffective, counter-productive, or worse. There is another solution, however, suggested by Stephen Scheeler, the former Facebook CEO for Australia and New Zealand, who’s urging Australians to delete the Facebook app, because ‘for Facebook and Mark [Zuckerberg], it is too much about the money and the power.’…
“As hard as it may be initially, all of us should stop using Facebook, cancel our accounts, and delete the app from our smartphones once and for all. We will have to either find other ways to share news and cat pictures or build new platforms. The only way we can escape Facebook’s control and reject its power over us and our society is to ‘unfriend’ it.”
Helen Raleigh, The Federalist
The left supports the intent behind Australia’s policy but criticizes its execution and Facebook’s response.
The left supports the intent behind Australia’s policy but criticizes its execution and Facebook’s response.
“Although news may not be a huge content category for Facebook, there’s money there. Audience engagement spikes during crucial news cycles, and news content often dominates discussions among Facebook users. News matters to Facebook because it matters to its audience — and to some of its regulators. News is engaging and viral, and Facebook prizes both, traffic and advertising data aside… it’s not irrational for publishers to want a bigger cut of the action that Facebook and Google enjoy from news without spending much to gather it…
“Australia’s plan may be heavy-handed, and it opens a can of worms around which links Facebook, or anyone else, should pay for… But if being heavy-handed also brings Facebook to the bargaining table to craft an alternative, so be it.”
Timothy L. O'Brien, Bloomberg
“But simply requiring a negotiation and binding arbitration doesn’t help a small local news outlet extract the kind of terms that News Corp. can for the use of its content. In fact, the Australian bill excludes publishers that are new, that have minimal revenue (so much for solo journalistic crusaders) and that do not publish what the Australian government regards as ‘core’ news…
“With seemingly each week bringing news of another local news outlet shutting down or being sucked into a soulless, cost-cutting corporate machine, lawmakers are running out of time to make a difference.”
Editorial Board, Los Angeles Times
“It’s clear that journalism is in trouble: The Public Interest Journalism Initiative has tracked the contraction of nearly 200 newsrooms in Australia since January 2019… Yet there is no guarantee that revenue generated by [this legislation] will address the problem… news outlets are not obligated to direct this money toward quality journalism — they are free to spend it however they choose…
“The government could have taken a tax-and-spend approach to the issue and used the proceeds to fund the media. Instead the [legislation] creates a system where money is transferred from one private entity to another, and where Australians are expected to trust that someone like Rupert Murdoch will spend his newly gotten gains on quality public interest journalism… The [legislation] lacks both a technical understanding of the digital media economy and the ambition to remedy the harms that it has produced.”
Lizzie O’Shea, New York Times
“Facebook Just Successfully Bullied the Sovereign Nation of Australia… That Facebook will now be allowed to pick and choose which publishers it supports augurs poorly for news organizations, large and (especially) small, that might report critically about the company…
“With multiple standoffs between big tech and government already underway or looming in the United States, the question is whether antitrust forces here will learn from Australia’s stumble, or be similarly bullied… What’s to stop Facebook from doing the same in America? That will be the big test for the Biden administration.”
Jacob Silverman, New Republic
“As a journalist, I was devastated by [Facebook’s] news ban, fearful as to what it meant for my already decimated industry, and angry at the government for going so hard, reportedly at the behest of big fish like Rupert Murdoch, and hurting the little fish who rely on Facebook in the process. As a citizen, I’m chilled by the display of raw power from Facebook, and concerned about misinformation on the platform should it happen again…
“But if I’m being honest, as a user, things felt fine. Better than fine; the newsfeed was lighter, calmer, happier… if this ban had stayed in place and proved popular, could it also have been the model for a new direction for Facebook?”
Rachel Withers, Slate