Google and Facebook are well-known media platforms, not only for entertainment, but also when it comes to the latest news. But that may soon change in Australia. According to Engadget's latest report, the two tech giants will face a new mandatory code of conduct from the Australian. The country has ordered its Competition and Consumer Commission (ACCC) to make Google, Facebook, and other media platforms pay news sources whenever they use their content in their posts.
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The two tech companies may face penalties if they don't follow the mandatory code of conduct, and also a binding resolution process to settle disputes. The new mandatory code of conduct also dictates data sharing, news ranking, and revenue sharing. A draft version of the code will be ready for implementation by the end of July 2020. However, it is not certain when the finalized version will be made public.
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Australia will make Google and Facebook pay for news content: Both media platforms to face new mandatory code of conduct
According to ABC Net's latest report, Josh Frydenberg, the treasure and deputy leader of the Australian Government, said that the new mandatory code of conduct would help "level the playing field" by requiring the international platforms such as Facebook and Google to pay the news media businesses for the content they produce.
"It's only fair that those that generate content get paid for it," Frydenberg said in the report.
Previously, the Australian Competition and Consumer Commission (ACCC) was ordered to develop a voluntary code to address the bargaining imbalance power between traditional media sources and the giant digital platforms.
However, the ACCC told the Australian government that achieving a voluntary agreement over the crucial issue of payment for the content of the news outlets is not possible. It will be enforced through sanctions and penalties, and will also have a binding dispute resolution process.
The new mandatory code will focus on the issues on the ranking of news content online, sharing of data, and the sharing of revenue created by the news media businesses.
According to the report, negotiations are being done which are expected to continue until November 2020. However, because of the pandemic caused by the novel coronavirus, the Australian government was pushed to order the ACCC to cease those efforts and start working on a new mandatory code. Paul Fletcher, the Minister of Communication of Australia, said that the media sector has been experiencing a financial crisis because of the COVID-19 pandemic.
"Media companies are facing significant financial pressure and COVID-19 has led to a sharp downturn in advertising revenue across the whole sector," Fletcher said in the report.
"Digital platforms need to do more to improve the transparency of their operations for news media providers as they have a significant impact on the capacity of news media organizations to build and maintain an audience and derive resources from the media content they produce," He added.
