Facebook may stop Australians from sharing news

AFP

Facebook on Tuesday said it would stop Australians sharing news content on its platforms if a proposal to make it pay local media outlets for their content becomes law, escalating tension with the Australian government.

The country could become the first to make the social media behemoth and search giant Google pay for news sourced from local providers under a royalty-style system.

Facebook’s plan to block the sharing of news on Australian user accounts, rather than pay royalties, puts the firm broadly in step with Google and pushes the prospect of an agreement with the government further away.

“Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing news on Facebook and Instagram,” Facebook Australia managing director Will Easton said in a blog post, referring to two Facebook-owned platforms.

“This is not our first choice — it is our last. 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.”

Treasurer Josh Frydenberg yesterday said the proposed law was in the national interest, followed 18 months of public inquiry and would create a more sustainable local media industry where original content was paid for.

“We don’t respond to coercion or heavy-handed threats wherever they come from,” Frydenberg said.

Australian Competition and Consumer Commission Chair Rod Sims, who is overseeing the proposed law, said Facebook’s response was “ill-timed and misconceived,” and that the proposal “simply aims to bring fairness and transparency to Facebook and Google’s relationships with Australian news media businesses.”

“As the ACCC and the Government work to finalize the draft legislation, we hope all parties will engage in constructive discussions,” Sims said.

Like in most countries, Australia’s traditional media companies in recent years have seen their mainstay advertising income streams eroded by online competitors, and consumers shy away from paid subscription.

Last month, Google began an advertising campaign using pop-up ads on its main search page that said its free service would be “at risk” and users’ personal data could be shared if the firm is made to pay news organizations for their content.

The ACCC called the statements “misinformation.”