'A level playing field': digital giants will have to pay for news | CroweDM
Global giants such as Google and Facebook will be forced to pay for content in a radical overhaul of Australia’s $10 billion internet advertising business, in a bid to shield local publishers from the economic wreckage of the coronavirus crisis.
Treasurer Josh Frydenberg will announce a new mandatory code for digital giants to adhere to in relation to the publishing of content.The plan follows moves around the world to tighten rules on the digital giants, with the European Union giving publishers a right to demand fees for content and the French competition authority telling Google earlier this month to negotiate “in good faith” with publishers.
The ACCC will be asked to draft a new industry approach for consultation in July with a definition of the “news content” to be covered by the mandatory code, with the expectation the search and social media giants will have to pay for content. Communications Minister Paul Fletcher named the coronavirus crisis as a factor in the government’s decision to accelerate a new regime with mandatory rules set by the ACCC.
With journalism and other media jobs at risk, company executives have backed the government approach as a way to make the digital giants pay a “fair” share of the revenue from the content created by others. News Corp Australia executive chairman Michael Miller said Google and Facebook had built “trillion dollar businesses” by refusing to pay for other peoples’ content.
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