You might soon be barred from sharing news on Facebook and Instagram
There’s a fight brewing between the Federal Government and tech giants like Facebook and Google.
The Federal Government wants to implement a new code to regulate the tech giants which would force tech giants Facebook and Google to strike deals with media companies - the deals would give media companies a share of the money the tech giants make off their content.
Now, Facebook - which owns Instagram - has threatened to ban Australian users from sharing news if the plan becomes law.
How would a deal between Facebook and media companies look?
Following a recent inquiry in the country’s media landscape, the Australian Competition and Consumer Commission (ACCC) suggested the Federal Government force Facebook to share its revenue with media companies as a solution to massive declines in mainstream media profits over the past decade.
Facebook, like Google, receives advertising revenue by having users on its platform - news is one of the main reasons 13 million Australians scroll through Facebook’s news feed.
Media companies have argued that it’s unfair for them to produce reporting only for Facebook and Google to profit off it.
Under the proposed law change, Facebook would be required to negotiate with companies like News Corp and Nine Entertainment Co. to share some of that advertising revenue.
“We don’t respond to coercion”
Treasurer Josh Frydenberg criticised Facebook for suggesting news would be removed from its platform in Australia, saying the country “makes laws that advance our national interest.”
“We don’t respond to coercion or heavy handed threats wherever they come from,” Frydenberg said. “Our reforms to digital platforms are world-leading and follow a ground-breaking inquiry by the ACCC. These reforms will help to create a more sustainable media landscape and see payment for original content.”