CANBERRA, Australia – Global digital platforms Google and Facebook will be forced to pay for news content in Australia, the government announced on Monday as the coronavirus pandemic caused advertising revenue to plummet.
Treasurer Josh Frydenberg said competition watchdog, the Australian Competition and Consumer Commission, known as ACCC, will release draft rules in late July for platforms to pay fair compensation for content journalistic siphoned from the media.
“We are very aware of the challenges and the complexity of ensuring a mandatory code. Many other countries have tried it without much success, “Frydenberg told Australian Broadcasting Corp. We believe we can be the world leader. “
“We want the rules of the digital world to reflect as much as possible the rules of the physical world,” he added.
ACCC had attempted to negotiate a voluntary code by which global giants would agree to pay traditional media for their content.
But the parties were unable to agree on “this key issue of paying for content,” said Frydenberg.
Google compensated for 47% of online advertising spending, with the exception of classified ads in Australia and Facebook
was claiming 24%, he said.
Google and Facebook did not immediately respond to a request for comment.
Media companies have stopped printing dozens of newspaper headlines across Australia because the closure of the pandemic prompted advertisers to stop spending.