Social media giant, Facebook has warned that it will block users and media organizations in Australia from sharing news stories on its platform if the government proceeds with its plan to force giant on the internet to pay for content in the future.
Last month, The Australian government released a draft mandatory code of conduct that would give online giants, Google and Facebook three months to negotiate with Australian media businesses to decide on fair pay for news content.
An aggressive move by the authorities was to ensure that these corporations pay struggling local news organizations for content or face millions of dollars in fines. The measures would also force transparency around the closely guarded algorithms that tech firms use to rank content.
Facebook and Instagram officials stated that Australians would be stopped from posting both local and international news stories on their platform claiming that the move was “not our first choice” but the “only way to protect against an outcome that defies logic.”
Facebook Australia and New Zealand managing director Will Easton stated that the proposed overhaul “misunderstands the dynamics of the internet and will do damage to the very news organizations the government is trying to protect”.
“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,” the Facebook regional MD said in a statement.
Mr. Easton also attacked the Australian Competition and Consumer Commission (ACCC), which is drafting the regulations, of having “ignored important facts” during a consultation process that ended yesterday.
The ACCC presumes that Facebook benefits most in its relationship with publishers, when in fact the reverse is true,” Mr. Easton replied.
“News represents a fraction of what people see in their News Feed and is not a significant source of revenue for us.”
Easton maintained his social media platform online had sent 2.3 billion clicks to Australian news websites in the first five months of 2020 at an estimated value of U.S.$148 million and the social media giant has been preparing to bring Facebook News to Australia, a feature already introduced in the U.S where the platform pays publishers for news.
“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,” Mr. Easton added.
“Unfortunately, no business can operate that way.”
Google has also campaigned forcefully against the proposed changes, creating pop-ups on the search engine warning “the way Aussies use Google is at risk” and urging YouTubers around the world to complain to Australian authorities.
The Australian legislation will originally focus on Facebook and Google, the two richest and most powerful companies in the world with further applications to any digital platform.
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