Treasurer of Australia Orders for a Code of Conduct | Wibest

The Treasurer of Australia has ordered ACCC to create a code of conduct for Facebook and Google. This is to force the tech giants to pay Australian media companies for using their content.

The Australian Competition and Consumer Commission started to develop a voluntary code of conduct. However, it was “unlikely” to get a voluntary agreement around the issue of payment for content.

The ACCC was working on the code as part of digital platform inquiry recommendations that force more regulation on companies. A report found that in Australia, Google and Facebook were taking a large share of online advertising revenue.

That is even though much of their content came from media organizations, Treasurer of Australia Josh Frydenberg added.

The report called for a voluntary code requiring companies to negotiate with news media. This is with regard to how to pay for their content and advise media companies of algorithm changes.

These referred to those that might affect online content rankings. The ACCC is now working on what content they plan to insert in the mandatory code, including penalties. 

Recent economic downturns hit Australia’s newspapers and media outlets hard, similar to those in the US and elsewhere. Because of this, media companies in the country had no choice but to cut payments for their staff. 

Some newspapers have halted production because of a sharp decline in advertising revenue. These were all due to the impact of the COVID-19 pandemic.

Treasurer of Australia Frydenberg said it’s only fair that those that generate content get paid for it. 

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Treasurer of Australia’s Order Disappoints Tech Platforms

Will Easton, Managing Director, Facebook Australia, and New Zealand said that the company felt disappointed by the Treasurer of Australia’s announcement.

Facebook has invested millions of dollars to support Australian publishers through content arrangements, partnerships, and training. COVID-19 has impacted every business and industry across the country including publishers, he said.

That’s why they announced a new, global investment to support news organizations at a time when advertising revenue is declining. Easton was referring to the $100 million Facebook pledge to invest in the news industry.

The tech platform’s pledge of investment is in the form of direct grants and advertising spend. They are doing this at this time, as COVID-19 makes accurate reporting more vital than ever.

Misinformation about the virus spreads online. Consequently, FB said if people needed more proof that local journalism is a vital public service, they’re getting it now.

Facebook will provide $25 million in grant funding for local news through its Facebook Journalism Project. The remaining $75 million will come in the form of additional marketing spend to worldwide news organizations.

Publishers expect a great downturn as advertisers reduce their spending. 

Moreover, the $100 million comes in addition to the $300 million Facebook pledge. It was in fact made for news programs, partnerships, and content at the beginning of 2019.

A draft of the Treasurer of Australia’s code of conduct order is due to be finalized by the end of July.

Easton said they believe that strong innovation and more transparency around the distribution of news content is critical. It is crucial to building a sustainable news ecosystem.