Big fines for tech giants lifting news

AUSTRALIA is on track to become the first country to order Google and Facebook to pay for the news it uses.

The Australian Competition and Consumer Commission set down rules for the breakthrough in a draft code that will force the tech firms to pay for Australian journalism on their platforms and share information about how news content is used.

The tech giants will face “hundreds of millions of dollars in penalties” if they choose not to comply with the new laws, which could be in place before the end of the year.

Federal Treasurer Josh Frydenberg launched the ACCC’s draft news bargaining code in Canberra yesterday, saying it was designed to create a “level playing field” for Australian media businesses forced to work with powerful tech monopolies but unable to share revenue from their own content.

“It’s about a fair go for Australian news media businesses, it’s about ensuring that we have

increased competition, increased consumer protection, and a sustainable media landscape,” Mr Frydenberg said.

“Nothing less than the future of the Australian media landscape is at stake with these changes.”

It is a year since the ACCC handed down the results of a comprehensive, 18-month inquiry into digital platforms that recommended tech giants share revenue acquired “directly or indirectly” from Australian

news organisations.

Under the new code, Google and Facebook must compensate commercial news businesses for the use of their content, with negotiations over payment taking place over three months.

If the companies cannot agree, they will have 45 days to submit a final offer, with the most appropriate chosen by an arbitrator.

ACCC chairman Rod Sims, who has spearheaded the fight for a fairer system, said there was a fundamental bargaining power imbalance between news media businesses and the major digital platforms, “partly because news businesses have no option but to deal with the platforms, and have had little ability to negotiate over payment for their content or other issues”.

The draft code includes substantial penalties for breaches, including infringement notices of up to $133,200, or 600 penalty units, and “hundreds of millions of dollars” in court-ordered fines.

Google Australia and New Zealand managing director Mel Silva slammed the draft code yesterday, saying it did not offer “incentives” for digital platforms to innovate, did not take into account web traffic Google provided to Australian news outlets, and put Google services in Australia at risk.

“The Government’s heavyhanded intervention threatens to impede Australia’s digital economy and impacts the services we can deliver,” she said.

Facebook did not respond to requests for comment.