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.