Oz vs FB: It’s complicated

Australia's looming law represents the most expansive reform to make Big Tech pay for journalism and is being closely watched around the world as a possible precedent

WHAT IS IN THE LAW?

The Media Bargaining Code will require news outlets to negotiate commercial news content payment deals individually or collectively with Facebook and Google

If they cannot reach an agreement, an arbitrator will decide whose offer is more reasonable

Facebook or Google can be fined up to

A$10 million ($7.4mn) for breaking any deals

Tech firms must give media outlets notice when they change search algorithms affecting the order in which content appears

They must also share their use of consumer data extracted from news content on their sites

Scott Morrison

“Facebook’s actions to unfriend Australia today were as arrogant as they were disappointing. They may be changing the world, but that doesn’t mean they run it.”

—SCOTT MORRISON, Australian PM

WHY WAS IT INTRODUCED? Income streams of traditional media companies in Australia hit by dwindling subscriptions and advertising

For every A$100 spent on online advertising in Australia, excluding classifieds, nearly one-third goes to Google and Facebook

WHAT’S THE REACTION?

Big Tech fears that what's happening in Australia will become an expensive precedent that larger countries will follow

Facebook says it generates billions of free referrals to Australian publishers worth significant sums to the media companies

Google, on the other hand, has struck deals with some major publishers such as News Corp, the

Mark broadcaster Nine and Zuckerberg

S W t

“As the law does not provide clear guidance on the definition of news content, we have taken a broad definition in order to respect the law as drafted.”

— A Facebook spokesperson on why it blocked access to news in Australia