CANBERRA, Australia (AP) – Australian laws forcing Google and Facebook to pay for news are ready to go into effect, though the legislature’s architect has said it will take time for digital giants to sign media contracts.
Parliament on Thursday approved the final amendments to the so-called News Media Bargaining Code agreed upon by Treasurer Josh Frydenberg and Facebook CEO Mark Zuckerberg.
In exchange for the changes, Facebook has agreed to lift a ban on Australians sharing access to and news.
Rod Sims, the competition regulator who drafted the code, said he was pleased that the amended legislation would address the market imbalance between Australian news publishers and the two internet gateways.
“All the signs are good,” Sims told Australian Broadcasting Corp.
“The purpose of the code is to address the market power that Google and Facebook clearly have. Google and Facebook need media, but they do not need any specific media company, and that means media companies cannot do commercial transactions, ‘added the Australian chairman of the Competition and Consumer Commission.
The rest of the laws were passed earlier in parliament so that they can now be implemented.
Google has been in business with major Australian news outlets over the past few weeks, including News Corp and Seven West Media.
Frydenberg said he was delighted with the progress of Google and more recently Facebook to reach commercial deals with Australian news outlets.
But Country Press Australia, which represents 161 regional newspapers across the country, has expressed concern that small publications are missing outside major cities.
Sims said he is not surprised that the platforms will deal with the big city ventures first.
“I see no reason why anyone should doubt that all journalism benefits from it,” Sims said.
“Things take time. Google and Facebook do not have unlimited means to talk to everyone. “I think it has a long way to go,” he added.
Chris Moos, a lecturer at the Oxford School of Business School, said the latest changes came down to a ‘small win’ for Zuckerberg.
Moos said the legislation was likely to result in small payouts for most Australian news publishers. But Facebook could once again block Australian news if negotiations break down.
The legislation is designed to keep the excessive bargaining power of Facebook and Google in check in their negotiations with Australian news providers. The digital giants would not be able to abuse their positions by offering presentations for their journalism to the news outlets. In the event of a deviation, an arbitration panel would make a binding decision on a winning bid.
Frydenberg and Facebook confirmed that the two parties agreed to amend the proposed legislation. The changes give digital platforms a month’s notice before they are formally designated under the code. This will give those involved more time to reach brokerage agreements before they are forced to make binding arbitration arrangements.
A statement Tuesday by Campbell Brown, Facebook’s vice president for news partnerships, added that the deal would allow the company to choose which publishers it would support, including small and local.
Frydenberg said his department will review the code within a year to ensure it delivers results consistent with the government’s policy intent. “