The company said in a blog post on Monday that Facebook plans to block plans to share local and international news on its platform.
Facebook Australia and New Zealand managing director Will Easton wrote in a blog post, “Australia is drafting a new regulation that misrepresents the dynamics of the Internet and gives news organizations trying to protect the government Will harm. ” The commission oversees the process of “ignoring important facts”, including the relationship between social media and news media.
“Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia to share local and international news on Facebook and Instagram.” Easton continued. “It’s not our first choice – it’s our last. But it’s the only way to avoid an outcome that defies logic and will hurt, not help, the long-term vibrancy of Australia’s news and media sector.”
The country’s proposed News Media Bargaining Code law, currently in draft form, revealed in a 2019 investigation that tech giants such as Facebook and Google take a larger share of online advertising revenue from media organizations in Australia. The Treasurer of Australia ordered the Australian Competition and Consumer Commission to develop a voluntary code of conduct, which would force platforms to pay media companies. The ACCC told the government that it seemed “impossible” that a voluntary agreement could be reached, however.
Under the proposed legislation, Google and Facebook must provide publishers with advance notice of changes to their algorithms, penalties for failure to comply. Both companies strongly pushed against this provision. With Facebook saying that it would give news organizations in Australia an unfair competitive advantage.
Easton wrote in his post that the news represents some of the excerpts that Facebook users see in their news feeds, and is “not a significant source of revenue” for the company. In addition to investing “millions of dollars” in Australian news businesses, he said, “In the first five months of 2020 we sent back 2.3 billion clicks from Facebook news feeds to Australian news websites at no charge – an estimated $ 200 million of additional traffic. AUD to Australian publishers
Earlier this month, Google published an open letter about the proposed legislation, and added a pop-up to its homepage in Australia’s warning “The way Australians use it is at risk” and regulation their search experience Can hurt Google argued, “It is set up to give special treatment to big media companies and encourage them to make heavy and unreasonable demands that would put our free services at risk.”
The ACCC pushed back, saying that Google’s letter contained “misinformation”, adding that “a healthy news media sector is essential to a well-functioning democracy.”
Media companies in Australia have largely supported the proposed changes. Australia’s newspapers and media outlets, like their counterparts in other countries, are working hard due to the economic downturn caused by the coronovirus epidemic, Guardian Has reported Australia’s big media companies have asked employees to cut pay in recent months, and many newspapers were forced to stop production due to a sharp drop in advertising revenue.