What the Facebook news ban means for Australian publishers

Facebook restricts users in Australia from sharing or viewing news links in response to proposed legislation

Under the terms of the deal, Google is understood to have agreed to pay Nine a little over $30 million annually for the next five years, and will provide Google users with free access to select content from Nine's newspapers, TV, and radio networks across different products.

Under the three-year agreement, News Corp. said it will receive payment when stories from its publications, including the Wall Street Journal, Barron's, MarketWatch, New York Post, the Times of London, the Sun tabloid in London and dozens of papers in Australia, are featured in the Google News Showcase.

As part of the agreement, the companies will develop a subscription platform and will share advertising revenue through Google's ad technology services.

Facebook argued that while a platform like Google is irreversibly connected to news - Google searches surface news links, whether or not platforms want that - publishers make the choice to post on Facebook.

"It's up to the government to tell us what's going on here, what they're doing to fix it and what it means for real people trying to access news".

The Australian media outfit were hoping to capitalize on the new law that would have allowed the government to set the online giant's content fees in the absence of a private deal.

Facebook and Google have vigorously fought the proposed legislation in Australia and have publicly threatened to pull out of the country over the effort to compensate news organizations.

"Australian regulators have found that for every $100 spent on digital advertising, $53 goes to Google, $28 to Facebook and only $19 goes to the others", Australian Sen.

Australia's Treasurer Josh Frydenberg confirmed earlier Wednesday that state-owned Australian Broadcasting Corp.is also in negotiations and plans to spend any Google revenue on regional journalism.

"The code simply aims to bring fairness and transparency to Facebook and Google's relationships with Australian news media businesses".

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Junkee editorial director Rob Stott says the publisher is disappointed by the move from Facebook.

"Facebook already pays some media for news content".

"The proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content", Easton stated as he announced Facebook's decision to restrict Australian news content today.

The pact comes amid a push for sweeping new regulations in Murdoch's homeland of Australia, where the government has been poised to crack down on tech giants by forcing them to pay local news outlets for featuring and linking to their stories.

Several large domestic media players, including the local arm of Rupert Murdoch's News - which owns two-thirds of Australian newspapers - have yet to announce Google deals.

Global publishers can still post to Facebook, but links and posts won't be able to be viewed in Australia.

'This morning, I had a constructive discussion with Mark Zuckerberg from Facebook, ' he tweeted on Thursday morning in the wake of the news.

Google has asked for series of changes, most notably having its new platform, Showcase, covered by the legislation rather than search results generated.

However, other publishers who rely on social media for traffic will be hit.

"This decision will undoubtedly have an outsized effect on small and medium-sized digital publishers, which will have a significant detrimental impact on the diversity of media voices available to Australians".

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