Facebook signs preliminary pay deals with three Australian news publishers

Facebook signs preliminary pay deals with three Australian news publishers

Under the revamped Code, Frydenberg will be able to "designate" those digital giants as subject to the new laws if they do not sign commercial deals with Australian news outlets.

Nick Clegg, Facebook's head of global affairs, on Thursday said the original draft of the law would have forced the firm to pay "potentially unlimited amounts of money to multinational media conglomerates under an arbitration system that deliberately misdescribes the relationship between publishers and Facebook".

- What exactly happened in Australia?

Facebook has reversed its controversial ban on Australian news a week after removing millions of posts but not without warning content could be taken down again at anytime.

Australia's government started with a stark take-it-or-leave-it stance for US internet giants to share revenue with local media, and Alphabet Inc.'s Google has indeed struck a series of multiyear deals with publishers like News Corp.

Google has already struck deals with major Australian news businesses.

Facebook and Google have each said they will invest around US$1 billion in news around the world over the next three years. Amid calls to emulate the Australian plan in other countries, USA lawmakers should avoid the temptation.

In announcing the end of its news blackout, Facebook said it "looks forward to continuing to work with the industry to find the best ways to support news".

The tech firms were all too aware of onlookers elsewhere and mindful of the precedent that agreeing to such moves would set.

"It's never been more important than it is now to have a plurality of voices in the Australian press", Costello said in the Facebook statement.

Why did Facebook object to the planned law?

- But Facebook pays for news in the United Kingdom anyway, so what is the problem? The law would allow for more cooperation among news publishers to set better terms for how their content appears online, or to create a digital ad network that lessens their dependence on Google and Facebook.

But one social media expert told the PA news agency that those deals could crumble if relations between the two turned sour in the future.

The government said an 11th-hour deal was reached between Facebook and Treasurer Josh Frydenberg, and the platform agreed to restore news to Australian users just days before the bill passed through parliament.

'In a recent consultation of the Commission, over 800 written submissions were received with many expressing concerns about the dominance of social media platforms like Facebook and Google in Irish society'. A nation was held to ransom - and it surrendered'.

The cofounder of Australian style site Man of Many, Scott Purcell, told AdNews that "the reality is that many smaller and independent publishers are still being left out of the conversations by the government as well as the private deals between the large tech companies, with the majority of benefits exclusively flowing through to traditional media companies and to the exclusion of independent localized content". Martin Kretschmer, a professor of intellectual property law at the University of Glasgow, said copyright law is the wrong tool to protect publishers because it shouldn't prevent news content from being linked to or quoted.

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