A draft mandatory code announced by the Australian govt would force US based Facebook and Alphabet Inc’s Google to pay Australian media publishers for news content. Thus, Australia will become first such nation which will help its native media company to gain royalty under the royalty style system. If everything goes well between the stakeholders it will become law later in 2020.
What is the new move?
According to 2019 study carried on Australian market estimated about three thousand journalism jobs have been lost in Australia in the last decade, as traditional media companies pay advertising revenue to Google and Facebook which paid nothing in return for news content. As per Joshua Anthony Frydenberg Australian Treasurer for every hundred Australian Dollar spent on online ads in Australia, excluding matrimonial and local advertisements, nearly a third goes to Facebook and Google.
Various news publishers in europe, France Germany and Spain have implemented national copyright laws that force Google to pay licensing fees when it publishes any part of their news articles.
What would be its Impact?
Australia becomes the first country to force Google and Facebook to pay for news content. The move comes after meetings between the online platforms, Australian Competition and Consumer Commission and media companies failed to result in an agreement. Before it goes for debate in the Parliament the draft will undergo a month-long consultation. However, If it is passed, it is expected to be reviewed during year.
Australia to force Google to pay news publishers Australia to force Google to pay news publishers