On Thursday, Australia’s parliament passed a law requiring tech giants to pay media outlets for their content.
The text was easily adopted after Google and Facebook reached agreements to avoid being subjected to arbitration, the results of which are binding. It paves the way for these two groups to invest tens of millions of dollars in local content deals.
This agreement could serve as a model for resolving disputes between tech giants and regulators around the world to balance the relationships between traditional media outlets facing major financial difficulties and the giants that dominate the Internet and generate a large portion of advertising revenue.
The Australian government said the law would guarantee news organizations “fair compensation for the content they provide and thus help keep public interest journalism alive in Australia”.
Google will now pay for the news content that appears in its new tool called “Google News Shockers”, while Facebook has now paid suppliers who appear in its “News” news product, which is supposed to be launched in Australia later this year.
A confrontation took place between Facebook and the Australian government. With links to news articles emanating from local or international media outlets blocked in response to the bill, the owner of Instagram and WhatsApp finally backed down and struck a last-minute deal with Canberra.
Mark Zuckerberg’s group announced that it will invest “at least” $ 1 billion in news content over the next three years.
The new amount, announced by Nick Clegg, the PR official at the social media giant, on Wednesday, adds to the $ 600 million poured into the media since 2018.
Google had previously agreed to pay “large sums” for the content of Robert Murdock’s media group, “News Corp”, which was pushing for the adoption of the new Australian law.
Facebook and Google have two more months to conclude other deals that would avoid binding arbitration.
© 2021 AFP