Australia has taken the initiative to force Facebook and Google to share revenue with the media. The country’s regulators want money from technology companies such as Facebook and Google to republish media reports. Facebook has threatened to shut down news sharing services in Australia following the move. Earlier last month, Google warned that Australia’s move could have a serious impact on its search results.
The loss of advertising has drastically reduced the income of Australian news publishers. That is why the country’s Competition and Consumer Commission (ACCC) has taken the initiative to force technology companies to share revenue. They say the new rules will create a label playing field between publishers and technology companies.
However, Facebook has threatened to cancel news sharing facilities for Australians once the proposed rules become law. He also said that the feature would be canceled on his assistant Instagram. The ACCC says that Facebook threatened at the wrong time and without realizing it. Company chairman Rob Sims said: “The legislation aims to bring fairness and transparency in the relationship between Facebook and Google with the Australian media business.
In Australia and New Zealand, Facebook managing director Will Easton said in a blog post that the proposed law misunderstood the multidimensionality of the Internet and would harm the media that the government wants to protect. As an argument, he said, publishers voluntarily share their news on the Facebook platform and in return they receive traffic to their site.
Will Easton claims that in the first five months of this year, there were approximately 2.5 billion clicks from the Facebook newsfeed to the Australian media. It costs around 200 million Australian dollars. “Even now, if we want to pay publishers to share the news, our final decision will be to discontinue this service,” he said. However, other Facebook services will continue in the country, he said.