Note: This was originally published as the daily newsletter for the Columbia Journalism Review, where I’m the chief digital writer
Australia has become Ground Zero in the battle over payment for news in recent weeks, thanks to a proposed law that would force platforms like Google and Facebook to pay publishers for the right to use even small portions of their articles. That battle escalated in two different directions at once on Wednesday: on one side, News Corp. announced a multi-year deal with Google that will see the search company pay for content from the Wall Street Journal, the New York Post, the Times in the UK and other Murdoch properties. Just hours later, Facebook announced that it has taken the exact opposite approach: because of the proposed law, the company says it will block publishers in Australia from posting any of their articles to Facebook, and will also block Facebook users in that country from sharing any news on its platform — that is, not just news from Australian publishers, but any news from any outlet worldwide. William Easton, director of operations in Australia for Facebook, wrote that the proposed news-payment code “fundamentally misunderstands the relationship between our platform and publishers who use it to share news content.”
The proposed Australian code, which is scheduled to go before that country’s Senate later this month for approval, would force Google and Facebook to negotiate with news publishers — either individually or as a group — in order to arrive at fair compensation for the use of even small snippets of their news content. If they can’t reach an agreement, then the Australian code would force the digital platforms to enter into binding arbitration with a government-appointed mediator. In addition to payment, the code also requires the platforms to do other things, including sharing any changes to their news-recommendation algorithms that might affect how a publisher’s content is found. The original version of the code would have forced Google and Facebook to pay a specific amount for every click on a news article, but a revised version released this week says that the platforms can negotiate payment based on lump sums for any and all content.
The Australian code is a tougher version of similar copyright-based laws that have been enacted over the past few years in a number of European countries, including France and Germany, which require Google and other digital platforms to pay for using even small sections of news articles. Those laws were sparked by changes to European Union copyright laws to enable what are called “neighboring rights,” and the EU is said to be watching Australia’s proposed law with a view towards possibly toughening its own legislation in similar ways. While Google has threatened in the past to withdraw its search and news services from the EU, as well as from France and Germany, the company has not followed through on these threats (with one exception: it removed Spain from its Google News index in 2014 after similar laws were passed in that country). Instead, it has been signing deals with publishers in France and elsewhere, paying them for inclusion in its Google News Showcase, which was launched last year.
Continue reading “Google cuts deals with publishers while Facebook blocks all news in Australia”