No More Negotiating: New Guidelines Can Finally Force Google And Facebook To Cover Information

No More Negotiating: New Guidelines Can Finally Force Google And Facebook To Cover Information

Digital platforms such as Google and Facebook will be created to compensate news media companies for using their information, under a new mandatory code that will be compiled by Australian competition watchdogs.

News media companies have complained for decades that reducing advertising revenue for Google and Facebook threatens their success.

Financial accidents caused by the COVID-19 pandemic have turned the disaster into a crisis.

Frydenberg vowed this latest step would equalize, including It is natural that people who produce content are paid for this.

Electric Imbalances And Falling Profits

Mandatory behavior codes are not the first strategy. After the ACCC released its report last year, it implies that Google and Facebook must each negotiate with information media companies to agree on the way they should divide the revenue made when electronic platforms get value, directly or indirectly, from articles made by news media companies.

The analysis concludes that the technology giant enjoys the benefits of enterprise information content without paying special privileges.

For example, Google’s search results include pieces of information including content from information sites. Both Google and Facebook have variations of company posts that load information quickly which do not show all types of paid advertisements that appear on the pages of the news site itself.

These strategies make it less likely for users to click through to real news sites, thereby reducing media companies from the consequences of subscribing to and including their advertisements. Meanwhile, since the ACCC report revealed, the company’s share of advertising revenue has been cut over the past ten years, as entrepreneurs flock to Google and Facebook.

Platform Is Given, Platform Is Taken

Why don’t news companies negotiate replacement payments with programs, instead of asking the government to measure?

The ACCC report found that electronic platforms such as Google and Facebook have become important gateways for information for many customers, which means that news companies rely on them for traffic visitors.

Simply put, a lot of company traffic information comes through customers clicking hyperlinks from Google and Facebook. But right at the same time, the electronics giant is controlling advertising revenue and utilizing news agency content in mutual competition.

The Pandemic Effect

The COVID-19 crisis has dealt a further blow to the marketing revenue of media companies, because prospective advertisers are pressured into economic hibernation or just out of business.

Obligation to license content from Google and Facebook can offer critical alternative income.

The ACCC will not reveal the draft code before July, so it is still uncertain how the task will be carried out or carried out.

ACCC head Rod Sims has sworn that Australia’s compulsory code of conduct will display severe penalties for Facebook and Google if they do not comply, which involves penalties that are large enough to be issued.

How Do Google And Facebook Respond?

These programs might try to avoid changing rules without again providing users with a variety of fast news posts. Google can also stop publishing news footage at the very top of the results of its research, as happened in Spain when faced with comparable tasks.

But there is evidence, even from the publisher’s own information, this can only drive readers directly to the publisher’s site.

Australia’s choice to leave negotiations by rule must stand compared to the situation in France, the most innovative European country in the implementation of the same coverage flowing in the 2019 European Union Copyright Directive.

Google’s previous solution was to have publishers allow the use of content snippets for Google at no cost. However, French supervisors argue that this is an insult to Google’s dominant position.

Google and Facebook are very likely to continue to reject those improvements in Australia, realizing that they can be reproduced in other authorities.

Even though they are collaborating, it is still not clear that leveling the playing field using all of the giant technologies can make a difference regarding the fall in community advertising revenue driven by coronaviruses.

The Case For Leasing Holidays For Businesses Is At The Forefront If Economical Coronavirus

The Case For Leasing Holidays For Businesses Is At The Forefront If Economical Coronavirus

Forced spatial alignment and alignment is very important to try and prevent hospital intensive care units from being overwhelmed.

But companies that are at the forefront of the economy which are closed or soon closed by public health restrictions need immediate help to get through it.

Temporary strikes important to business income need not be a permanent reach for productive capabilities. We should not risk flooding shops, cafes, bars, hotels, health clubs, and hairdressers on a large scale.

Many of the frontline companies have seen their earnings dry up immediately. Some have been closed accidentally, others find creative ways to earn money at online retail or takeaway services, for example, but many will replace only a small portion of income before the crisis.

Rent Is The Biggest Barrier To Survival

Staffing, or more easily facing setbacks, is the only alternative for most of these businesses. Even substantial wage subsidies will not entice company owners to continue working when the business closes.

For businesses at the forefront of finance, almost all of their variable costs such as salaries and stock can be deferred during closing. But their fixed price especially rent is huge.

The average trader pays rent of A $12,000 per month fitness center on average, $10,000. Cafes and hairdressers lose $3,000 to $4,000 every month in rent.

For most vulnerable companies, rents are below 20 percent of operating costs under ordinary conditions, but while they hibernate through coronavirus, that number will reach between 80% and 95 percent.

Several schemes have been announced to help these companies. The Commonwealth is the largest, and will certainly include small and medium sized companies 100 percent of salaries and wages withheld for tax purposes of up to $100,000. For businesses to qualify for the full amount, they must hold the exact same amount, so they must pay staff.

The state government has announced a partial relief from taxes, tariffs and fees, and access to loans. This will help, but rent is your big expense that can’t be avoided for most front line businesses.

Companies that are exposed will lose tens of thousands of dollars, or more, every month. Many will have cash reserves, but for many who shutdown 3 months or more it will be rather difficult to absorb.

Vacation rentals, or at least a substantial reduction in rent, will give these companies the opportunity to prevent temporary closure into permanent closure.

Market Prices Are Near Zero

Many storefronts cannot be used for other purposes. That means the market costs for retail services, food and lodging, and the window of individual services will be very close to zero during closing.

Some landlords have done the right thing and given their residents vacation rentals while these restrictions are imposed.

Thats smart keeping their tenants in business will give these landowners the best opportunity to own rental property when constraints are raised.

Under ordinary conditions, the market will function. But the risk here is that it will happen too slowly. Some landlords refuse to rent out their places without payment.

The response from management is no. That mindset can send thousands of shops, cafes, pubs, restaurants, hairdressers, fitness centers, theaters, and tourism operators to the wall.

In this past week, more than 70 percent of businesses in the industry have been hit by the COVID-19 crisis. That number is predicted to rise beyond 90% in the coming weeks.

Preventing landlords from expelling commercial tenants, or asking landlords to suspend rent, will not help businesses will remain liquidated if they know they will be burdened with rent for months to cover the trail.

While the short term income that hits landlords is insignificant, the market damage will be far greater if a number of small and medium sized businesses are lost.

Acting Now Will Reduce The Danger

Owners of several properties that require vacation rentals must still make monthly mortgage payments. However, banks provide vacation loans that they might be able to take advantage of.

If there are openings in the loan holiday agreement, the authorities must use the bank to ensure the land owner is insured. Or, the authorities themselves can provide partial compensation for lost rent.

At present, hundreds of thousands of companies are counting numbers to see if they can remain solvent. With rent on the expenditure side, the numbers will not increase for long.

Each state and territory government must impose vacation leasing for types of companies on the front lines of the crisis. When a financial shock wave resounds, state and territory ministers must have the power to include other vulnerable industries on this list.

The secret is speed. For every day they wait patiently, hundreds of businesses will close down.

Give Money To People And Companies Today, They Can Reply After That (If And When They Can)

Companies Today, They Can Reply After That (If And When They Can)

The coronavirus book sees Australia facing an unprecedented health and financial disaster. The real key to preventing a market downturn is to prevent a decline in income for newly dismissed employees who will not have the ability to manage what they generally buy, and temporarily close down companies that will not have the ability to pay rent or other fixed prices. , or buy services and goods to exchange.

It is likely that after the vaccine was given by mathematics, or maybe before, economic recovery will begin. So the question is what is the fairest strategy to deal with this significant short term injury?

There are instruments that need to be used to increase the size and efficiency of the fiscal push needed. Income contingent loans provide additional financial assistance without threatening future financial solvency.

Is It A Contingent Loan Income?

Many people in Australia know all of our HECS (Higher Education Contribution Schemes) for post-secondary education costs. Students take loans by the government to pay the price of their school today, and pay it back when they have passed a certain threshold in the long run.

For those who have HECS debt, even when income decreases at certain intervals, such as from unemployment, arising after infancy or caring for elderly parents, no payment is required at that time. This is referred to as income based loans.

How Can We Use This Loan For The COVID Disaster?

It is helpful to distinguish between three types of fiscal pressures that arise and contingent income loans that might help

Small companies that are forced by the principles of health or commerce are inadequate to freeze action

 Large companies imposed by inadequate health or trading principles to freeze action.

Income contingency loans can be made for all three examples, although each one is very different.

Currently The Worker Is Unemployed

For workers who are currently unemployed, a HECS type system can be a government that provides a fixed payment (such as $5,000) per individual. Part of the payment must be replaced based on existing (or new) HECS parameters.

People whose income does not recover do not pay anything, or less than people who recover their financial safety (which will return the money faster). 30 years of effective HECS gathering expertise, such as lessons learned, have shown this to be simpler.

Small Businesses Are Affected

In the example of a contingent income loan for a company, another approach must be used, which does not involve private income.

Company revenue coverage is a legitimate quarterly company requirement through the current Business Activity Statement used to collect GST. Unlike income, income cannot be legally manipulated to match time obligations. Liability contingent income loans will be linked to the Australian Business Number.

In the case of small companies, the authorities can offer financing, which can be closed at a rate that represents the company’s ability to pay if income recovers.

To minimize non-repayment opportunities, eligibility may be limited to companies that have extraordinary potential solvency probabilities, such as, for example, in this case for several predetermined years (for example three decades).

Authorities must decide on the payment costs, and outside modeling have shown a level of around 5% to 8 percent of annual prospective income will be adequate.

To ensure all this is fair for companies and healthy funding in the future, the current government must emulate different loan amounts, and different interest rates and sets.

Modeling assumptions for budget preparation will be asked to be more precise about the scope of detail.

Bigger Business

In the case of assistance to companies that are not too small, the amount of cash needed for the current situation requires bank participation in collaboration with the authorities.

The government is not equipped to carry out large-scale business loans. However, contingent loan income can have an important role in this effort with commercial banks to obtain monetary loan requirements that are not too small.

Joint government arrangements and bank loans are the government providing income contingent loans which are a percentage of their bank loans. Loan authorities can pay bank loans in the right short term until the company reopens and recovers.

This type of partnership will be very good for companies, which have the ability to settle standard loans when no short-term income comes in.

This will also benefit banks, which may then have a much higher prospect of credit recovery. In addition, it supplies prospective returns to citizens for the support of bank authorities during these difficult financial times.

The supply of income contingent loans for people, as well as income contingent loans for companies, will have a significant capacity to sustain the Australian market through a sharp temporary recession, although it does not put extra pressure on prospective financial solvency.