Social media giant Facebook has threatened to block Australian users from sharing news if a proposed news media bargaining code goes ahead.
Technology giants Google and Facebook will be required to negotiate with Australian media companies over payment for news content and notify them of algorithm changes under the proposed mandatory code of conduct.
But Facebook Australia managing director Will Easton said in a post today they have been left with little choice.
“Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram,” Mr Easton wrote.
“We already invest millions of dollars in Australian news businesses and, during discussions over this legislation, we offered to invest millions more. We had also hoped to bring Facebook News to Australia, a feature on our platform exclusively for news, where we pay publishers for their content.”
Treasurer Josh Frydenberg responded by saying the Federal Government “doesn’t respond to heavy-handed threats”.
“Australia makes laws that advance our national interest. We don’t respond to coercion or heavy handed threats wherever they come from.
“Our reforms to digital platforms are world leading and following a ground breaking 18 month inquiry by the ACCC.
“These reforms will help to create a more sustainable media landscape and see payment for original content.”
Over the last fortnight Google has used its suite of products to alert Australian users to claims that any changes to the arrangement will be negative for its users.
The current ACCC proposal would see a revenue-sharing agreement between publishers and Google and Facebook, decided by independent arbitrators.
“We tried to make this work,” Campbell Brown, Facebook’s head of global news partnerships, said in an interview.
“We proposed our version of something workable… Unfortunately, there are so many things in this proposed legislation that just make it untenable.”
In a Monday night post (local time), Ms Brown said Australia had left Facebook with two choices.
“Removing news entirely or accepting a system that lets publishers charge us for as much content as they want at a price with no clear limits. Unfortunately, no business can operate that way.
“Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram,” she wrote.
SOURCE: 9NEWS
