SYDNEY, Australia (CU)_The Australian government is unmoved by Facebook CEO Mark Zuckerberg’s appeal to scrap its proposed laws that will make Google and Facebook pay for news sourced from local media outlets, the country’s Treasurer said on Sunday (Jan 31).
Appearing on the Australian Broadcasting Corp, Treasurer Josh Frydenberg said Zuckerberg reached out to him and communications minister Paul Fletcher, in order to talk about the country’s “News Media Bargaining Code” legislation, but failed to convince them to change course.
“No, Mark Zuckerberg didn’t convince me to back down if that’s what you’re asking,” Frydenberg said, without giving further details of the meeting.
He noted that the Australian government is in “detailed discussions” with Google, Facebook, and other players across the industry, during which the internet giants have been coming up with various excuses to try to get Canberra to change course.
“Originally they had a concern with the algorithm requirements of notification. Then it was about the [Australian dollar exchange rate]. Then it was about the final arbitration model. Now we’re told that if we go ahead with this, we’re going to break the internet,” he explained. “What I do know is that media businesses should be paid for content.”
Earlier this month, Google carried out an “experiment”, hiding some Australian news sites from its search results, as both the search engine giant as well as Facebook argue that news outlets also benefit from additional readership online when articles are featured on platforms.
And in the recent days, Google has also made dire warnings to Canberra, threatening to withdraw its Search function from the Australian market if the government demands they pay for news.
Frydenberg on Sunday, said he doesn’t dismiss Google’s threats, but is “not intimidated by them either”.
He also revealed that meanwhile, Microsoft has told the Australian government that it stands ready to take Google’s place should the tech giant withdraw its Search function. “They’re watching this very closely, and no doubt see opportunities here in Australia to expand,” Frydenberg noted.
It is evident that the Australian government is not currently inclined to give in to the threats of the tech giants, with Prime Minister Scott Morrison saying that “Australia makes our rules for things you can do in Australia”.
“[…] people who want to work with that, in Australia, you’re very welcome. But we don’t respond to threats,” he noted.
Following years of complaints by local media that its online content was not being fairly compensated, the Australian government launched a probe which found that Google and Facebook receive a whopping 80 percent of Australia’s total online advertising spending. This discovery led to the proposed legislation on the code of conduct, on which, the country’s legislature is expected to make a final vote sometime in February or March.
