The Australian government will be forcing tech giants like Google and Facebook to pay Australian media outlets for news content.
This will make the Australia the first country to require these tech companies to pay for news content provide by the media companies. It has been described as a watershed moment. The aim is to give publishers a level playing field.
What we have sought to do is to create level playing field to ensure a fair go for Australian news media businesses and that when they generate original content that they are fairly paid for it. We want Google and Facebook to continue to provide these services to the Australian community which are so much loved and used by Australian. But we want it to be on our terms, we want it to be in accordance with our law and we want it to be fair.
Josh Frydenbe, treasurer, Australia, said in a statement.
The code of conduct will be subject to a month-long consultation period. It has been drafted by Australia’s competition regulator and will be debated by the parliament.
If the legislation is passed, the code is designed to be reviewed after a year.
It lays out a royalty-style system and could impose penalties worth hundred of millions of dollars in case of non-compliance.
Facebook and Google meanwhile, strongly oppose the proposal, the timing of the move is also crucial, it comes just a day after the leaders of the tech firms were grilled by the U.S. congress for alleged abuse of market power.
The tech giants are facing growing calls from around the world for greater regulation.
In Australia, the move has been in the works for a while. It has been building pressure on the company since late last year when following an inquiry into the state of the media market.
The Australian government told Facebook t=and Google to negotiate a voluntary deal with media companies to use their content.
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