Facebook threatens news cull
FACEBOOK and Google could face penalties in the hundreds of millions if they continue to refuse to pay for news content in Australia.
Treasurer Josh Frydenberg said Australia did not respond to “coercion or heavy-handed threats” after Facebook issued a statement amid media reform negotiations that it would remove content rather than pay for news.
“Australia makes laws that advance our national interest,” Mr Frydenberg (pictured) said.
“We don’t respond to coercion or heavy-handed threats wherever they come from.”
Mr Frydenberg said the reforms would “help to create a more sustainable media landscape and see payment for original content”.
The statement comes after Facebook threatened to remove all news content from its platform in Australia before giving into the ACCC’s plan to introduce a mandatory code of conduct in late July.
According to the ACCC, if the government and the social media giants cannot reach a deal within the three-month negotiation period, “an independent arbitrator would choose which of the two parties’ final offer is the most reasonable within 45 business days”.
Mr Frydenberg said the “substantial penalties” could reach hundreds of millions of dollars if they failed to adhere to the policy.
The fallout follows moves by the ACCC to force Facebook and Google to compensate Australian media outlets for the use of their content – a move that would set a worldwide precedent and one that Mr Frydenberg said would establish a “more level playing field”.
Instagram, which is part of Facebook, will also be part of the news ban.
Facebook and Instagram issued alerts to their users on Tuesday saying that from October 1, 2020, their terms of service would change to include: “We also can remove or restrict access to your content, services or information if we determine that doing so is reasonably necessary to avoid or mitigate adverse legal or regulatory impacts to Facebook.”
This step will allow them to remove users’ content to avoid paying for its use.
Facebook issued its reaction to the move on Tuesday, with Australia and New Zealand managing director Will Easton saying it would ban all news content from being seen by Australian users if the news code was introduced.
“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,” he said in a statement.