blue and white logo guessing game
Photo by Brett Jordan on Pexels.com

In a move that seems to have been out of nowhere, the Australian government has called upon tech giants such as Facebook and Google to negotiate a fair payment with news organisations for using their content. In this article, we cover all the details of what is going on in Australia, find out if the government’s demand will work, and what Google and Facebook are doing about it.

Introduction

The Australian Government has called out Facebook in a new strategy to tackle the big tech companies and make sure that they are paying fair amounts of money to news organisations. The Australian Competition and Consumer Commission has suggested that Facebook should be forced to negotiate with newspapers and other media outlets with regards to what they charge for the advertising displayed on their network.

What is the issue with Facebook?

The Australian Government Wants Facebook to Negotiate a Fair Payment With News Organisations ”. This is a great example of a developer understanding the power that it has over a user. The developer is not looking at you as a consumer, but as a potential customer. Facebook has enough data about you to know if you are likely to be interested in this news article, your age, gender, education, profession, language preferences, interests, and so on. It has enough information to have a conversation with you about it.

Why should tech giants pay news organisations?

Many people worry that the world’s most popular social media platform pays too little to news organisations. Google and Facebook pay a tiny fraction of what other digital service companies pay for content. In fact, these tech giants make their money by gathering vast amounts of information from your everyday activities. For example, Facebook has a technology called “Deepfake” which allows users to make fake videos based on other people’s footage.

The tech giants say they don’t take the marketing and news functions of media companies into account, and that they pay content providers according to what services they provide.

How can Google and Facebook negotiate a fair payment with News Organisations?

Facebook and Google are taking more of the advertising revenue away from News Organisations. The Australian Government is trying to get these companies to negotiate a fair payment with News Organizations. News Organizations would like Facebook and Google to pay for content in addition to advertisements.

Alternatives to the Australian Government’s Suggestion

Facebook is a company that is worth billions of dollars. It should be paying for the content that it creates, just as news organisations have to pay for their own content. The Australian Government has suggested that Facebook give 60% of its revenue from advertising to news sources. This is a great idea, and we support it.

On the other hand, Facebook does not exactly have a stellar track record with its ad policies. For example, Facebook has managed to get away with repeatedly misplacing domain name records from the Internet Corporation for Assigned Names and Numbers ( ICANN), which is like the internet’s United Nations. This has caused trouble for many legitimate businesses. So, to fully understand what Facebook is proposing, we have to look at what they are proposing…This is where it gets interesting. Facebook is proposing that they would start charging people to view content. This is news to me. How does this work? It will be targeted, but is it targeted at the content itself or is it targeted at the users who are viewing the content? If it’s the former, then people who are using their phones to browse Facebook apps will have to pay money to look at other people’s content. And if it’s the latter, then what happens to the normal Facebook user who is not using their phone?

close
Business Edition Logo

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox

We don’t spam! Read our privacy policy for more info.