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Australia asks Facebook, Google to share revenue generated from news

The two companies will have to negotiate with traditional media on remuneration in good faith

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Facebook | Social Media | online advertising revenue

Bloomberg 

Google, Facebook
If no agreement is reached, there will be a binding arbitration process and penalties for breaching the code of up to A$10 million ($7 million) or 10 per cent of local revenue

Australia’s government has ordered and Alphabet’s to share revenue generated from news articles, adding to growing global regulatory and political pushback against the digital giants.

The two will have to negotiate with traditional media on remuneration in good faith, Treasurer Josh Frydenberg said Friday. If no agreement is reached, there will be a binding arbitration process and penalties for breaching the code of up to A$10 million ($7 million) or 10 per cent of local revenue.

The move aims to correct what the government says is a power imbalance between two of the world’s most profitable and a local media industry that’s bleeding jobs as it loses advertising revenue to digital platforms. It follows measures elsewhere in the world, including in France where antitrust regulator in April ordered to pay media to display snippets of articles.

First Published: Sat, August 01 2020. 00:50 IST
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