The Australian government has passed the first law of its kind in the world that requires digital platforms, such as Facebook and Google, to negotiate with media organizations to pay for content or face arbitration.
And theHe said (Josh Frydenberg) Josh Frydenberg, deputy leader of the liberal party who led the new law: This legislation helps equal opportunity and knowledge that Australian media organizations pay for original content creation.
And theSays The Australian Consumer and Competition Commission: The law addresses the significant imbalance in bargaining power between Australian media organizations and digital platforms.
The new law saw fierce opposition from the two tech giants, as Facebook temporarily banned users and publishers from sharing news content through its main social network and only acquiesced after the Australian government approved a series of amendments to the proposed law.
Google initially suggested it might have to pull its search engine out of the country if the law goes into effect, but it later backed down on its plans.
Instead, Google has chosen to strike deals with media organizations to pay for news content, and this includes a major three-year agreement with News Corp.
The bargaining act requires digital platforms to pay a negotiating fee to link to or use news content, and includes a mandatory arbitration process if an agreement on the fee cannot be reached.
It also requires technology companies to provide advance notice to news organizations about upcoming algorithm changes.
The digital platforms had hoped to avoid arbitration, a process whereby an independent panel decides the value of news content in news feeds and search results.
The law is currently designed to specifically target Facebook and Google, but it could be extended in the future to other platforms where fundamental imbalances appear in the bargaining power of Australian media organizations.
However, amendments to the law mean that the government can also take into account any commercial agreements a tech company has entered into with media organizations before it is formally designated as a platform under the law.
The ACCC says the law is necessary after an 18-month investigation found that tech giants are taking a disproportionately large share of the revenue from online advertising, which it believes comes at the expense of media organizations.
Regardless of whether other states have ended up enacting similar laws, Australian bargaining law is likely to have an impact beyond their borders.
The deal between Google and publishers, such as News Corp, covers publications around the world, and the Financial Times reports that the value of these deals has increased significantly as a result of the law. Australia.