CANBERRA, Australia (AP) – Australian law requiring Google and Facebook to pay for news is ready to go into effect, although the law architect said it will take time for digital giants to reach media deals.
Parliament on Thursday adopted final amendments to the so-called News Media Negotiation Code agreed on Tuesday between Treasurer Josh Frydenberg and Facebook CEO Mark Zuckerberg.
In exchange for the changes, Facebook agreed to lift the ban on access to and exchange of information by Australians.
Rod Sims, the competition regulator who drafted the code, said he was pleased that the amended legislation would address the market imbalance between Australian news publishers and the two internet gates.
“All signs are good,” Sims said.
“The purpose of the code is to address the market power that Google and Facebook clearly have. Google and Facebook need media, but they don’t need any special media companies, and that means media companies have not been able to do business, ”added the chairman of the Australian Competition and Consumer Commission.
The rest of the law was passed in Parliament earlier, so it can now be implemented.
Google has already struck deals with major Australian news companies in recent weeks, including News Corp. and Seven West Media.
Frydenberg said he was pleased to see progress made by Google and, more recently, Facebook in reaching trade agreements with Australian news companies.
But Country Press Australia, which represents 161 regional newspapers across the country, has expressed concern that tiny publications outside big cities may be missing.
Sims said he was not surprised that the platforms will first do business with big cities.
“I see no reason why anyone should doubt that all journalism will benefit,” Sims said.
“It simply came to our notice then. Google and Facebook do not have unlimited resources to chat with everyone. I think this has a long way to go, “he added.
Chris Moos, a lecturer at the Oxford University School of Business, said the latest changes were a “small victory” for Zuckerberg.
Moos said the legislation is likely to lead to small payments for most Australian news publishers. But Facebook could block news in Australia again if negotiations stall.
The legislation was designed to reduce the oversized bargaining power of Facebook and Google in their negotiations with Australian news providers. Digital giants could not abuse their positions by making take-it-or-leave-it payment offers to journalism news companies. Instead, in the event of a defeat, an arbitration committee would make a binding decision on a winning bid.
Frydenberg and Facebook confirmed that the two sides agreed with the changes to the proposed legislation. The changes would give digital platforms a month’s notice before they are officially designated under the code. This would give those involved more time to conclude brokerage agreements before they are forced to enter into binding arbitration agreements.
Facebook’s Vice President of Global Affairs, Nick Clegg, said on Wednesday that Australian law, without changes this week, would have allowed media conglomerates to “ask for an empty check”.
“Fortunately, after further discussion, the Australian government agreed to the changes, which means that fair negotiations are encouraged without the imminent threat of heavy and unpredictable arbitration,” Clegg, the former British Deputy Prime Minister, wrote in a Facebook post.
Facebook last week prevented Australians from sharing news, but also blocked access to the pandemic, public health and emergency services.
The blockade was a response to which the House of Representatives sent the code last week, in a form that Facebook considered “inefficient.”
Clegg said Facebook “made the mistake of over-applying” and “some content was accidentally blocked.”
Both Google and Facebook follow Australian media deals under their own licensing models, the Google News Showcase and Facebook News.
But media executives say such transactions would not be possible without the threat that an arbitration panel would make final decisions.
Frydenberg said his department will review the code within a year to make sure it delivers results that are consistent with the government’s political intent.