Yahoo Finance Facebook threatens to pull Aussie news shares from site
Social media giant Facebook has escalated tensions between itself and Australian news publishers, threatening to ban users from sharing news content.
Facebook would prevent Australian users from sharing news stories if it and Google are forced to compensate publishers for holding their stories on the platform.
As it stands, the Australian Competition and Consumer Commission’s (ACCC) draft code aims to address “acute bargaining power imbalances” and is intended to be reviewed after a year, ACCC chairman Rod Sims said.
Communications Minister Paul Fletcher said the details are yet to be ironed out, in terms of how much content is worth and how Facebook and Google would pay. Fletcher said the code would also support smaller publishers through the ability to collective bargain, and also said there would be penalties of up to 10 per cent of Australian turnover for companies that refused to engage.
However, Facebook Australia and New Zealand managing director Will Easton said the draft code will hurt Facebook.
"Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram," Easton said on Tuesday.
"This is not our first choice – it is our last.
"But it is the only way to protect against an outcome that defies logic and will hurt, not help, the long-term vibrancy of Australia's news and media sector."
In the year to May, Facebook shares of news content generated $200 million in revenue for publishers, he added.
"When crafting this new legislation, the commission overseeing the process ignored important facts, most critically the relationship between the news media and social media and which one benefits most from the other," Easton said.
Treasurer Josh Frydenberg responded by saying the government “doesn’t respond to coercion or heavy handed threats”. He said the reforms are “world leading” and will create a more sustainable landscape.
The Australia’s Institute’s Centre for Responsibility director Peter Lewis said Facebook has a “pattern of behaviour of treating democracy with contempt”.
“Rather than working with the Federal Government to give effect to the ACCC to build a sustainable model for the Australian media, Facebook is threatening to block it from its platform,” Lewis said.
“This builds on Facebook’s refusal to ensure truth in political advertising or proactively moderate divisive and destructive content on its site.
“In fact, if they follow through on this threat Facebook will removing trusted journalism from its site allowing disinformation and conspiracy theories to flourish.”
Facebook’s statement comes weeks after Google said the plan to force it to share ad revenue, would affect “all Australian users”.
Google said the code favours “big media companies” and would allow them to make “enormous and unreasonable demands”.
However, the ACCC said this was misinformation from Google.
"The draft code will allow Australian news businesses to negotiate for fair payment for their journalists’ work that is included on Google services.
“This will address a significant bargaining power imbalance between Australian news media businesses and Google and Facebook," it said, adding: "A healthy news media sector is essential to a well-functioning democracy."
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