Australia’s standoff against Google and Facebook worked—sort of
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Over Zoom, Australia's communications minister, Paul Fletcher, has the air of a man in the middle of a victory speech. He credits his team and the country's competition regulator for succeeding where others had failed: forcing tech giants to pay for news. There were a lot of people saying you can't really succeed in taking on the global digital giants," he says, sitting beneath strip lighting in his Sydney constituency office. But Fletcher and Australia's federal treasurer, Josh Frydenberg, persevered. In 2020, when the Australian government asked the competition regulator to develop a law that would force tech giants to pay for the news that appears on their feeds, Fletcher was aware of the stories others used as warnings. When Germany's biggest news publisher, Axel Springer, tried to block Google from running snippets of its articles in 2014, it backtracked after just two weeks once traffic plunged. When Spain tried to force Google to pay for news in 2014, the search giant just left-blocking Google News in the country for seven years.
Google threatened Australia with even more drastic action. In January 2021, the tech giant suggested Australians could lose access to its entire search engine if Fletcher and Frydenberg's news media bargaining code," which would force platforms to pay news publishers for links, came into force. Facebook also lobbied hard against the code, arguing that news makes up less than 4 percentof the content people see in their news feed. On February 17, Australians woke up to discover that all news links had been wiped off the platform, leaving the Facebook pages of the country's biggest media companies completely blank. Traffic to news websites sank 13 percent, illustrating exactly what the government said it was worried about. Facebook's actions confirm for all Australians [the] immense market power of these media digital giants," Frydenberg said at the time.
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