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Australia Reached out to Collect "Facilitation Fee" From the US, But Was Rejected

wallpapers Tech 2020-08-10
The Australian government recently announced a draft that stipulates that US technology giants Google and Facebook must pay for the use of news content produced by Australian media companies. If you do not pay, you will bear a huge penalty of 10 million Australian dollars.

Australia Reaches out for "Facilitation Fee"

Australian Finance Minister Freidenberg stated on July 31 that on April 20 this year, it would take three months for Facebook, Google and Australian media companies to conduct fair negotiations, but the two parties failed to reach a voluntary agreement. Therefore, the Australian government regulator issued this mandatory rule, but this draft was fiercely opposed by the two technology giants.
According to the managing director of Google Australia, this regulation shows the Australian government's intention to force interference in the normal operation of the market. Because Google brings "billions of clicks" to Australian media companies every year, if Australia insists on doing so, it will lose a wider audience that is essential to news media companies.
Facebook said that although news content is irreplaceable, most users choose Facebook not just to read news, but out of user habits. The implication is that although the news content provided by the Australian government is very important, Facebook users choose to read it more because they are used to it.

Australia Is "Rebellious": Fines for No Fees

The Australian government stated that US technology giants such as Google and Facebook have control over the global media market, from search engines to advertising to news and data. This situation must be broken by a country first. Not only that, but regulators all over the world should have such attempts.
In fact, Australia is not the first country that intends to ask Google and Facebook for news content fees. France and Spain have also asked Google and Facebook to do so, but the regulations have not been successfully implemented. Therefore, if this new Australian regulation can be successfully implemented, it will be a milestone. At present, Australia insists that the draft will be revised and perfected and the legislation will become law within this year. By then, Australia will become the first country to succeed in this field.

Australia Explained: for the Benefit of the Media

Among Australian media companies, advertising revenue accounts for a large share. However, due to the continued impact of the epidemic, many media companies’ advertising revenues have plummeted, and eventually they have to declare bankruptcy. In the absence of any hope of adjustment at home, so I reached out to the American technology giants. Freudenberg also emphasized that there are many hidden dangers in the future of Australian media. This measure will help ordinary media companies to compete fairly with technology giants and bring great benefits to media companies.


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