Australia's Standoff Against Google and Facebook Worked - Sort Of

Remember when Google threatened to leave Australia if the country implemented a "news media bargaining code" forcing social media platforms to pay news publishers?Wired reports:Google and Facebook did not leave; they paid up, striking deals with news organizations to pay for the content they display on their sites for the first time. The code was formally approved on March 2, 2021... One year after the media code was introduced, Google has 19 content deals with news organizations and Facebook has 11, according to [Australia's communications minister Paul] Fletcher. Now countries around the world are looking at Australia's code as a blueprint of how to subsidize the news and stop the spread of "news deserts" - communities that no longer have a local newspaper. Canada is expected to propose its own version in March. Media associations in both the U.S. and New Zealand are calling for similar policies. Reports suggest the UK culture secretary, Nadine Dorries, is also planning to require platforms to strike cash-for-content deals. The international interest has prompted fierce debate about how well Australia's code works. "We know it works, we can see the evidence," says Fletcher. He points to how the deals are funding journalism in rural areas. Broadcaster The ABC said its deals with Facebook and Google enabled it to hire 50 regional journalists. Google, however, disagrees. It has accused the media code of stifling media diversity by giving media giants a better deal than smaller publishers. "The primary benefactors of such a code would be a small number of incumbent media providers," Google said in a submission to the U.S. Copyright Office, which is currently reviewing its own media laws.... The criticism of Australia's system focuses on its lack of transparency, which means that media companies cannot compare notes on the deals they are offered and there is a lack of clarity on which outlets are entitled to negotiate.... Concerns about the code's flaws are leaking into Canada, where Justin Trudeau's Liberal Party is drafting its own Australia-style legislation. "We're locking down the incumbent publishers, and we're locking down Google and Facebook's dominance as opposed to countering the dominance that exists on both sides," says Dwayne Winseck, journalism professor at Canada's Carleton University.... Yet Canada's news industry is willing to overlook these limitations because it considers the cash as a lifeline, according to Paul Deegan, president and chief executive of News Media Canada.... They are running out of time to save some of the media landscape, he explains - 40 newspapers have closed permanently since the start of the pandemic. "We've got a number of titles and even chains of titles that are quite literally teetering on the brink." Deegan agrees the code isn't perfect. This is not a magic bullet, he says, "this is a badly needed Band-Aid."

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