I spoke with execs on both sides of this issue on Wednesday, and they
are all in agreement about that: In the words of one source, regulators
in other countries "all want to cut and paste" Australia's proposed
News Media Bargaining Code.
"We are expecting a big push in the
US in the new Congress," David Chavern, the head of a trade group for
newspapers, tweeted Wednesday.
So what is this all about? If you
haven't been following along, here's the story in a few sentences: Large
publishers, led by Rupert Murdoch's News Corp, have been pushing to get
paid by Google and Facebook, since the tech platforms profit by running
ads alongside links to news content. The tech companies have been
objecting, saying this payment plan would break how the web works, but
they've come up with alternatives to compensate some news producers.
Some
of their allies have likened it to a shakedown. The NYT's Damien Cave
has a recap from Sydney here. Now to Wednesday's developments:
Kerry
Flynn writes: "What is Facebook without news? People and publishers in
Australia are now finding out. What was once Facebook leadership's
suggested outcome in response to Australia's bargaining code became a
reality on Wednesday. When users in Australia tried to post news
article, a message popped up that reads, "This post can't be shared."
The same went for people all around the world when they tried to post
news from Australian publishers.
And all news publisher pages in
Australia are now empty. So are other news-adjacent pages that seem to
have been swept up in this action by mistake.
In a thread on
Twitter -- a platform still permissible for sharing news in Australia
and elsewhere -- Facebook exec Campbell Brown wrote, "Our goal was to
find resolution that strengthened collaboration with publishers, but the
legislation fails to recognize fundamental relationship between us
& news organizations."
This legislation is not yet law. But
FB is taking action on its own terms. Its argument is that publishers
choose to post news and make money from doing so.
In a blog
post, FB's William Easton suggested that "the value exchange between
Facebook and publishers runs in favor of the publishers." Even so,
Facebook had been starting to pay some publishers for their content
through Facebook News. Brown and Easton said in their separate blog
posts that Facebook had been planning to launch that product in
Australia. But now they're focused on other countries.
>>
According to the Australian Financial Review, "Nine and News Corp were
both on the cusp of inking agreements with the Silicon Valley giant,
according to industry sources. But in this game of global brinkmanship
between a sovereign government and gigantic corporation, Facebook is
desperate to avoid setting a precedent for other countries to plunder
its rich revenues..."
Facebook's
drastic action was in stark contrast to an earlier announcement on
Wednesday from Google. Instead of following through on its threat to
shut down search in the country, Google has been cozying up with
Australian publishers, including Murdoch. News Corp and Google announced
a three-year deal in which the tech giant will pay to license content
from Murdoch's brands in Australia and other countries. This means that
News Corp is participating in Google's News Showcase, a new product
where publishers curate content, and partnering on developing a
subscription platform, sharing ad revenue and investing in audio and
video journalism. This way, Google technically isn't paying for links,
it's paying for something separate.
>> Earlier this week,
Australia's Seven West Media and Nine Entertainment signed licensing
deals with Google for News Showcase...
>> Note what News
Corp chief Robert Thomson said earlier this month: "New terms of trade
will be introduced" in Australia "but that debate now extends across the
globe. There is not a single serious digital regulator anywhere in the
world who is not examining the opacity of algorithms, the integrity of
personal data, the social value of professional journalism, and the
dysfunctional digital ad market..."
--
ABC Managing Editor David Anderson's statement: "We will continue our
discussions with Facebook today following this development..."
--
Casey Newton tweeted: "I expect this will be temporary. In the
meantime, though, there are worse things than Australians getting their
news from somewhere other than Facebook." In his newsletter, he argued
that the Google/News Corp deal is bad for journalism...
-- Emily
Bell tweeted: Facebook is "not a consistently pro-democratic company,
and it is not an accountability platform. It also does not fundamentally
care about or respect journalism. It is an advertising company..."
--
Mike Isaac wrote: "I am fascinated to see what sort of information —
misinformation? — fills the void in countries that will no longer allow
news publisher link sharing..."
Donie
O'Sullivan writes: "Specifics of this case aside.... this is a reminder
of the huge role Facebook plays in our lives and in our discourse. From
staying in touch with friends, to where we get news, to where the seeds
of an insurrection can be sowed. Given its size, influence, and
importance, we are going to see the company at the center of more and
more existential and fundamental debates about how we communicate and
how we are informed and misinformed in the 21st century..."