The ACCC believes its proposed regulations will "address a significant bargaining power imbalance between Australian news media businesses and Google and Facebook".
After the Australian Competition and Consumer Commission (ACCC) submitted a draft regulatory code, designed to let Australian news publications "negotiate for fair payment for their journalists’ work", Facebook’s Australia is pushing back.
Stating that Facebook has invested millions of dollars in local Australian news companies, Easton also claimed the ACCC misunderstands the dynamic between Facebook and news organisations.
Facebook Australia’s Managing Director, Will Easton, published a statement today claiming the regulations "misunderstands the dynamics of the internet and will do damage to the very news organisations the government is trying to protect".
"Assuming this draft code becomes law," Easton continued, "we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram".
Under the ACCC’s proposal, companies like Facebook and Google will have three months to negotiate with Australian media organisations.
Easton believes the regulatory code is an "outcome that defies logic and will hurt, not help, the long-term vibrancy of Australia’s news and media sector".
Still, we recognize that news provides a vitally important role in society and democracy, which is why we offer free tools and training to help media companies reach an audience many times larger than they have previously".
Users could be blocked from sharing news, Facebook claims, if new draft regulations are put in place.
Facebook threatens to remove news from its platform in Australia https://t.co/YYC8MM5EQ5— CNET News (@CNETNews) September 1, 2020