Google wins key concession in law to pay for news in Australia | Tech News

Google wins key concession in law to pay for news in Australia

The law now also recognizes the monetary value the platforms provide to news businesses by directing readers to their websites.

By:BLOOMBERG
| Updated on: Aug 21 2022, 00:19 IST
FILE PHOTO: A Google sign is shown at one of the company's office complexes in Irvine, California, U.S., July 27, 2020. REUTERS/Mike Blake/File Photo
FILE PHOTO: A Google sign is shown at one of the company's office complexes in Irvine, California, U.S., July 27, 2020. REUTERS/Mike Blake/File Photo (REUTERS)

Google and Facebook Inc. won a key concession in Australia as the government unveiled details of a world-first law to force the digital giants to pay to display news articles.

The legislation, introduced to Australia's parliament on Wednesday, requires Google and Facebook to compensate publishers for the value their stories generate for the platforms.

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But in a modification to an earlier draft, the law now also recognizes the monetary value the platforms provide to news businesses by directing readers to their websites.

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While the details will be debated by lawmakers and could be altered, the change in wording follows a months-long campaign by Google to get the law blunted. The tech giant argued that publishers also benefit from additional readership online when articles are available on platforms.

Facebook had taken a harder line. The U.S. social media company has threatened to block Australians from sharing any news on its sites if the law is passed. The different responses has made Australia a test case as watchdogs worldwide seek to rein in the vast advertising power of the digital giants.

Flawed Law

A spokesman for Google, owned by Alphabet Inc., said it's too early to comment on the legislation. Facebook's media office didn't respond to an email seeking comment. Facebook has said the law is based on the incorrect assumption that the company benefits most from its relationship with publishers.

The legislation is designed to support a local media industry, including Rupert Murdoch's News Corp., that has struggled to adapt to the digital economy.

“Australian news media businesses need to be fairly compensated for generating original content and the rules of the digital world should mirror the rules of the physical world,” Australia Treasurer Josh Frydenberg said on his website. “This new mandatory bargaining code is a world-first.”

An arbitration panel will decide how much the technology companies must pay publishers if both sides can't agree on a payment on their own, according to the law, which the government doesn't expect to be legislated this week before parliament goes on hiatus until February.

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First Published Date: 09 Dec, 07:39 IST
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