Facebook said on Monday that it had entered into an agreement with Australian lawmakers to pay local publishers for their news content, after the government finally agreed to change some of the terms within its new media code.
Why it matters: The deal ends Facebook’s temporary ban on sharing news links on its platform in the country. Data showed that the ban on link sharing has reduced news traffic in the region.
- It also ends the global ban on Facebook linking users to Australian news publishers.
Fast fast in: Facebook’s decision to stop sharing links was taken in response to a new law that would force Google and Facebook to pay Australian news publishers for content, including headlines and links, with terms set by a third party , if they were unable to do so. comes with payout agreements with local publishers themselves.
- Google entered into payout agreements on Australian publishers last week so that it does not have to ease the law and pull Google Search out of the country. Facebook has not.
- The law was intended to benefit publishers, but the impact of Facebook’s banning ban showed the power that technology giants have over publishers, who lost a large amount of traffic during the confrontation.
Expand chart
What they say: “After further discussions with the Australian Government, we have reached an agreement that will enable us to support the publishers we choose, including small and local publishers,” said Campbell Brown, VP of news.
- “We will be restoring news on Facebook in Australia in the coming days,” she said.
Be smart: Facebook in particular has embarked on a base club arbitration clause in Australia’s new media code, which would mean that a government-appointed panel would set the payout rate if the parties could not reach an agreement.
- Sources told Axios that the technology giant is concerned that third-party vendors could help publishers make unreasonable claims.
- Facebook on Monday proposed that the Australian government should change this part of the law to allow Facebook to enter into agreements with publishers on its own terms.
What’s next: In the future, Brown says the Australian government has made it clear that the technology giant “will retain the ability to decide whether news will appear on Facebook so that we will not automatically be subject to a forced negotiation.”
- “It has always been our intention to support journalism in Australia and around the world, and we will continue to invest in news worldwide and resist the efforts of media conglomerates.”
Go deeper: News traffic in Australia drops after ban on sharing link on Facebook
Editor’s Note: This post will be updated as the latest news develops.