Facebook threatened to ban the sharing of news articles in Australia over a proposed law that would allow local media organizations to bargain with digital platforms over fair payment.
The social network on Tuesday responded to the draft code, arguing that the regulation “misunderstands the dynamics of the internet and will do damage to the very news organizations the government is trying to protect.”
“The proposed law is unprecedented in its reach and seeks to regulate every aspect of how tech companies do business with news publishers,” Will Easton, managing director of Facebook Australia and New Zealand, wrote in a blog post. “Most perplexing, it would force Facebook to pay news organizations for content that the publishers voluntarily place on our platforms and at a price that ignores the financial value we bring publishers.”
In April, the Australian Competition and Consumer Commission (ACCC) was tasked with developing a mandatory code of conduct to address perceived bargaining power imbalances between the folks who write the news and those who help spread it. “This imbalance has resulted in news media businesses accepting less favorable terms for the inclusion of news on digital platform services than they would otherwise agree to,” according to the ACCC, which expects final legislation to be introduced to Parliament soon.
Facebook has a hard time believing that, considering news represents a “fraction” of what users see in their feed, and “is not a significant source of revenue” for the firm. In fact, Easton explained, Facebook essentially pays Australian publishers. Over the first five months of 2020, the social network sent 2.3 billion clicks and an estimated $200 million AUD worth of traffic back to news websites “at no charge.”
“We already invest millions of dollars in Australian news businesses and, during discussions over this legislation, we offered to invest millions more,” the blog said. “But these proposals were overlooked. Instead, we are left with a choice of either removing news entirely or accepting a system that lets publishers charge us for as much content as they want at a price with no clear limits. Unfortunately, no business can operate that way.”
PCMag sister site Mashable reports that Facebook has begun alerting users its Terms of Service will be updated from Oct. 1 to allow for the removal or restriction of content, services, or information if it could cause legal trouble. The Australian Communications and Media Authority (ACMA) would be responsible for determining eligibility of news media businesses to participate in the code, which would initially apply only to Facebook and Google. Other platforms may be added in the future “if they hold a significant bargaining power imbalance.”
