Media payment law: Facebook blocks news sharing and Google strikes a deal with News Corp


Australia is in the process of passing a law that forces tech giants such as Google and Facebook pay regional publishers and broadcasters for the content displayed in search results and news feeds displayed. For the same, the tech giants have taken two different plans of action.

Facebook has banned all news content being shared on their platform while Google has a less drastic approach as they have come to an agreement with News Corp a Rupert Murdoch company will be paid for their news in UK and US as well.

As a response to the “Media Bargaining Law,” Facebook announced in a blog post that all Australians have been blocked from viewing and sharing regional and international news content through Facebook. Although there is a restriction in sharing and viewing content Australians can still publish news from other users.

News Corp will be paid by Google for hosting its news content in Australia as well as the United States of America and the United Kingdom. The details of the deal taking place are viewed as a result of the change in dynamic between Facebook and Google. A media report suggests that tens of millions of dollar deals are being taken place with publishers yet to be revealed. 

Premium content from 30 news corporations such as The Times in the U K and Sky News will be featured in Google platforms after the deal. Multi-million deals with Australian publishers including Nine Entertainment, Seven West, and Junkee Media are signed by google.

Facebook said that the promoting platform earns less than the publishers, further the gains of news for the platform is less than 4 percent for the news displayed in feeds as the major reasons for not accepting the law.

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