Google and Facebook may have to pay news companies in Australia
The Australian Competition and Consumer Commission (ACCC) has announced draft rules for online platforms such as Facebook and Google to pay fair compensation to news outlets for news content. The decision to mandate compensation for news articles featured on online platforms comes at a time when the Coronavirus pandemic has negatively affected the advertising revenue of news companies; the draft rules are planned to come into effect in July 2020. According to Joshua Anthony Frydenberg, Treasurer, Australian government, earlier attempts to negotiate a voluntary code where global platforms would pay traditional media for their content failed since parties could not agree on ‘this key issue of payment for content’.
A Facebook spokesperson expressed disappointment at the government’s announcement and a Google spokesperson stated that the company would work constructively with the industry under the new rules.
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