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The News Media Bargaining Code establishes that tech companies have to strike deals with publishers directly. If no agreement is reached, an independent arbitrator can set the amount of money domestic media are paid.
On Thursday, the Australian parliament passed an unprecedented law that forces tech companies to pay publishers for news content on their platforms.
The legislation "will ensure that news media businesses are fairly remunerated for the content they generate," Treasurer Josh Frydenberg said in a statement. These giants such as Facebook and Google have firmly rejected the initiative.
This is precisely what Facebook was afraid of: the global precedent Australia is setting. Others will copy.
What are they going to do now - ban news on Facebook in every country that adopts this approach? Google at least already have a solution (News Showcase deals) https://t.co/oU0XwRYy9G
The News Media Bargaining Code establishes that tech companies have to strike deals with publishers directly. If no agreement is reached, an independent arbitrator can set the amount of money domestic media are paid. Moreover, the companies have to report changes on their algorithms since they influence the content's display.
Although Google and Facebook have argued that they already contribute to a local media outlet by redirecting users to those websites, the authorities say the new code sets a "fairer" negotiation process. Meanwhile, the tech giants have tried to pressure the government by blocking sites and suspending search engine operations over fears that this law could replicate the legislation elsewhere in the world.
#FromTheSouth News Bits | Among the latest updates on the situation in Washington after the mayhem Wednesday, Joe Biden calls for investigation into the Capitol storming, Facebook and Twitter restrict Trump’s accounts and members of Trump's Cabinet resign. pic.twitter.com/duNWYDPSzY