Read The Times Australia

Daily Bulletin

'Suck it and see’ or face a digital tax, former ACCC boss Allan Fels warns Google and Facebook

  • Written by: Andrea Carson, Associate Professor, Department of Politics, Media and Philosophy, La Trobe University

Have you used Google lately and been greeted by a yellow warning saying that the way Australians search on Google is under threat?

To understand why these messages are appearing, Media Files interviewed former chair of the Australian Competition and Consumer Commission (ACCC), Professor Allan Fels, and CEO of the Public Interest Journalism Initiative (PIJI), Anna Draffin (full recording above, recorded from home due to the pandemic).

Read more: Google's 'open letter' is trying to scare Australians. The company simply doesn't want to pay for news

This episode of Media Files is about world-first laws to be introduced later this year that will force Google and Facebook to pay for news on their sites to help fund public interest journalism.

The yellow warning messages by Google (which also appear on its sister site, YouTube) aim to garner public support for a campaign to pressure the federal government to dump revenue-sharing laws planned for later this year.

In a similar vein, Facebook’s Australian and New Zealand director of public policy, Mia Garlick, argued in the Sydney Morning Herald before the draft laws were released, that Facebook already provided top value to media outlets with

billions of opportunities for publishers to monetise their stories, gain new paying subscribers, serve ads, and keep Australians on their websites.

And while Allan Fels said he’s not surprised by the tech giants fighting back against the new law, the public will expect the tech giants to “suck it and see”.

“I think people will ask Google and Facebook to ‘suck it and see’ to see what turns out instead of just going home with a cricket bat or baseball bat,” said Fels.

“It’s normal, it’s par for the course, in ACCC matters, that parties make threats […] with jobs, investment, higher prices, leave the country. Everything!”.

Fels believes the Morrison government may well respond with a new digital tax if Google or Facebook pulls some business out of Australia, like it did in Spain in 2014. Then, the Spanish government charged Google copyright fees for using news snippets, so Google shut down its news service.

“Personally, I think that the government has got this huge stick in the closet if Google walks or partly walks, and that is to put on a digital tax,” Fels said, adding that

A digital tax is being talked about globally, mainly at the OECD. And virtually every member of the OECD wants to put a digital tax on the platforms except the US. Certainly the US under Donald Trump […] But even if the US continue to oppose it, I think a lot of countries are just going to proceed with their own digital tax.

How did we get here?

Following the ACCC digital platforms inquiry report last year, the consumer watchdog recommended the two tech giants pay Australia’s major newsrooms (excluding the SBS and ABC) an annual fee to use news on their sites.

Anna Draffin and the big media companies agree with the ACCC’s findings that media companies cannot fairly compete with the digital platforms to win advertising revenue, and that this revenue shortfall has led to masthead closures and journalism job cuts.

Draffin said its introduction is urgent as COVID-19 has accelerated the demise of many news outlets, particularly in regional Australia.

At first, the ACCC was to oversee a voluntary code with the technology companies negotiating in good faith with the big news outlets.

But, unhappy with the progress of the bargaining talks, Treasurer Josh Frydenberg announced in April the code would be mandatory. The government released draft laws in July sparking Google’s fear campaign warning its users that Australians “search experience will be hurt by new regulation”.

In an August 24 blog post, Google argues it helps “more than 20 million Australians” and is unlikely to shut down Australian news from its search engines.

A screen shot of a blog post from Google Australia. Google Australia’s blog post said the firm helps ‘more than 20 million Australians and over one million businesses in Australia.’ Google

Facebook contends news is just a fraction of the information on its platform and the mandatory code is unnecessary.

ACCC chair Rod Sims, on the other hand, argues that

News content brings significant benefits to the digital platforms, far beyond the limited direct revenue generated from advertising shown against a news item […] News media businesses should be paid a fair amount in return for these benefits.“

The mandatory code includes transparency measures to force the digital platforms to share data and insights about how it uses algorithms to rank news content online.

Draffin said while the proposed laws are welcome, at this stage, they do not include the public broadcasters nor do they include smaller newsrooms with annual turnover under A$150,000.

"The code alone isn’t necessarily going to be the solution particularly for that [smaller] end of the market,” said Draffin.

“New market entrants would largely sit outside of any benefit from the code. So there could be room for a loan or venture capital fund for start-ups as a separate policy setting,” she said.

Read more: In a world first, Australia plans to force Facebook and Google to pay for news (but ABC and SBS miss out)

The draft laws force the companies to negotiate for up to three months or face a binding binary dispute resolution where independent arbiters determine the winning bid among the bargaining parties. Breaches of the news laws would attract fines of up to $10 million or 10% of a company’s annual domestic turnover.

Public consultation into the draft mandatory bargaining code closes this Friday, August 28.

Additional credits

Theme music: Susie Wilkins.

Image

Shutterstock

Authors: Andrea Carson, Associate Professor, Department of Politics, Media and Philosophy, La Trobe University

Read more https://theconversation.com/suck-it-and-see-or-face-a-digital-tax-former-accc-boss-allan-fels-warns-google-and-facebook-145041

Business News

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Elevate Your Morning Routine with Cafe-Style Coffee at Home with the Right Coffee Machine

There's something magical about that first sip of coffee in the morning. It’s more than just a bev...

Top Garment Steamers for Busy Professionals in Australia

The gap between garment steamers built for a quick touch-up and ones built to keep pace with a wor...

Correct Sleeping Posture to Minimize Back Strain

Most people don’t pay much attention to how they sleep until they start waking up with a stiff bac...

Why Product Longevity Matters for Sustainable Australian Buildings

Sustainability in building design is often associated with recycled materials, renewable resources a...

NDIS Support Coordination Explained: What Does a Support Coordinator Actually Do?

NDIS support coordination explained means understanding how a professional can help participants n...

When Should You Speak with Divorce Lawyers in Sydney?

Divorce involves more than completing an online application. It can affect parenting arrangements, p...

How to Choose a Reliable Hot Water System Installer on the Gold Coast

Choosing a reliable installer is just as important as choosing the right hot water system. A qualifi...

How Microtask Platforms Support Modern Digital Promotion

Digital promotion has become increasingly complex. Businesses communicate with customers through w...

Cosmetic Dentistry Options From a Brisbane-Based Dental Team

You cover your mouth when you laugh. You skip the group photo. Maybe you edit pictures to soften a...