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Why
are tech giants opposing a 'news media bargaining
code'? - October 26th, 2020
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By
Fergus Hunter, Tim Biggs and Zoe Samios
Global
tech giants Google and Facebook are fighting the Australian
government and media outlets over whether they should
pay to have news on their platforms.
For
almost three years, the government has been trying
to understand how much market power these two companies
have and how that affects businesses such as media
companies in Australia.
More
than a third of Australians read news on Facebook
and people routinely find the latest news via Google,
whether they’re searching for it or have it recommended
to them by apps on their phone. News outlets believe
their content is valuable for users of Google and
Facebook and a key reason why people use these platforms
– and that the tech giants don't pay them enough
for using this content.
In
an attempt to balance the playing field between news
media companies and Google and Facebook, the government
announced plans earlier in 2020 to introduce a compulsory
"news media bargaining code" that would
force tech giants to share revenue with news organisations.
But
the tech giants are pushing back. They argue they
should not have to pay for news because they send
publishers free traffic. They also argue news sites
voluntarily post their content to these platforms.
Facebook
says it will drop all local, national and international
news from its Australian platforms if the code becomes
law – which would have major implications for
the way millions of Australians stay informed.
Google,
which has a 96 per cent share of the online search
market in Australia, has warned consumers the new
code will damage its services.
So
why the argy-bargy? What does the draft code say?
And what does it mean for consumers who access news
via these platforms in Australia?
CREDIT:STEVE
KIPRILLIS, GETTY IMAGES
*click
here for full article and multimedia
(The
Sydney Morning Herald)
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