Facebook, "Cannot Pay News Fees"... Clashes with Australian Government

Concerns Over News Usage Fee Payment Enforcement Law
Will It Set a Legislative Precedent?
Establishment of News Link Blocking System

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Tensions are escalating between the Australian government and Facebook over the proposed News Media Bargaining Code, a law that would compel major digital platform companies to pay for news usage. As regulations on giant digital platform companies tighten worldwide, Australia's move could set a precedent for legally mandating platform companies to pay news usage fees.

According to the Wall Street Journal (WSJ) on the 17th (local time), Facebook announced via a blog post the day before that it has decided to stop news services in Australia.

This announcement came after the Australian government pushed for legislation requiring digital platform companies like Google and Facebook to pay for news usage.

William Easton, Facebook's Managing Director for Australia and New Zealand, stated, "The Australian government's approach completely ignores the relationship between news media and platforms," adding, "The media voluntarily upload content, and through this, media companies earned a total of AUD 407 million (approximately KRW 349.2 billion) last year."

He continued, "They are forcing a binary choice: either comply with the law without understanding the relationship between media and platforms, or stop allowing news content on our platform services. We have chosen the latter with a heavy heart," he added.

Facebook has previously claimed that news accounts for less than 4% of content on its platform, arguing that it is only a very small part of its service.

To this end, Facebook plans to invest about USD 300 million (approximately KRW 332.2 billion) to build systems that block news links posted on the platform.

This move contrasts with Google's earlier amicable agreements with local Australian media outlets by signing news copyright contracts. On the 15th (local time), Google signed a news usage fee contract with Seven West Media, a major media company owning Channel 7, Australia's largest commercial broadcaster. On the 16th, Google also signed a news copyright contract worth AUD 30 million (approximately KRW 2.57 billion) annually with Nine Entertainment, a major media group owning Australia's two leading daily newspapers, The Sydney Morning Herald and The Age.

Facebook's response is interpreted as stemming from concerns that Australia's legislative enforcement could set an international precedent for legally mandating news usage fee payments. In fact, the European Union (EU) is also pushing legislation requiring major platform operators like Google and Facebook to pay for news usage.

Meanwhile, if the News Media Bargaining Code passes the Australian House of Representatives vote, Google and Facebook will be required to negotiate copyright agreements with local media companies within 90 days.

This content was produced with the assistance of AI translation services.