Recently American tech-giant Facebook, Inc has blocked the Australian users from reading and sharing any local and international news in it’s platform. The Social networking giant has initiated this move in the backdrop of the dispute over new media payment law that Australia has initiated.

Points To Note

  • The Social networking giant has retaliated over the new legislation that was brought by Australian government. This legislation pushes the tech companies to pay publishers for the news content they share.
  • With this act, the Australian government wants the tech giants like Facebook and Google to pay for the news which is shared on their platform.
  • Australian government had reported that the advertising revenue that earlier supported the publishers is now depleting.
  • So, this new legislation forces them to make deals with media companies separately or to set fees for them.
  • But Facebook, Inc has initiated this move to oppose the legislation stating that the proposed law fundamentally misunderstands the relationship between Facebook and publishers who use the platform to share news content.
  • The company has also dealt with the Google to challenge Australian parliament for the proposed law.
  • Google, on the other hand has also started to sign agreements on revenue-sharing with the publishers.

Implication

  • Facebook’s move has sparked outrage in Australian. Because, with this move several government and emergency response pages such as fire services, health authorities and police were removed from platform.
  • Now, the Australian users will not have access on the news content on Facebook coming from Australian and international media.
  • Also, the international users will not have the access news content coming from Australia.
  • The media houses and Independent publishers from Australia will be restricted from sharing or posting their content on Facebook Pages.

Backdrop

Australian Parliament has proposed a legislation following which Facebook and Google will require to make payment negotiations with the media companies for using their content.  However, both tech-giant have argued that these media industry were already benefiting from traffic routed to them through the digital platforms. Both also stated that, this legislation result into “unmanageable levels of financial risks as well as the operational risk” for them.

Facebook Blocks users from Sharing News in Australia Facebook Blocks users from Sharing News in Australia