London Daily

Focus on the big picture.

Analysis: How Facebook managed to 'unfriend' Australia while Google came out on top

Analysis: How Facebook managed to 'unfriend' Australia while Google came out on top

Facebook and Google are taking vastly different approaches to an escalating battle in Australia that could reset the relationship between tech and media.

In the face of a proposed media code that would force Big Tech to pay publishers for news shared on their platforms, Facebook (FB) has decided that it would rather just stop people from finding such content on its service altogether. The company's ban on news content in Australia, announced Wednesday, forced the pages of media organizations and even some unrelated essential services to go dark.

But Google (GOOGL) — which just a month ago threatened to pull its search engine in the country if the law moved forward — took a different tack.

Over the last few days, Google has tried to get ahead of the new legislation by announcing partnerships with some of the country's largest media organizations, including Rupert Murdoch's News Corp (NWS) and Seven West Media. The Sydney Morning Herald has also reported that its owner, Nine Entertainment, has struck a deal with the tech company. Nine and Google declined to comment to CNN Business about that report.

Facebook's stunning announcement suggests that the company is willing to stand up to Australia where Google has backed down. So far, though, it appears that the search giant might be playing the winning hand: Facebook's move has been met with scorn in Australia, while Google's strategy has been cheered by media organizations and politicians alike.

"We want to thank Google for the very constructive discussions that they have been having with stakeholders," Australian Treasurer Josh Frydenberg told reporters during a press conference Thursday, where he blasted Facebook for its ban.

Frydenberg and Communications Minister Paul Fletcher had said earlier this week that a "central feature" of the new rules was that they encouraged companies "to undertake commercial negotiations outside the code."

Facebook pulls the plug


Facebook and Google have tussled with publishers for years over how they display their content, with media companies arguing the tech giants should pay them for the privilege. Critics of the two tech firms point out that since they dominate the online advertising business, the arrangement starves news publishers of money and leaves them scrambling for leftovers. Defenders of the platforms argue that they drive huge audiences to news content.

The Australian legislation would allow media outlets to bargain either individually or collectively with Facebook and Google — and to enter arbitration if the parties can't reach an agreement. Both tech companies have been vehemently opposed to the code, arguing that they support the news media but don't necessarily need to in order to support the business.

Facebook's move to block news content, which the government said it hadn't received "any notice" of beforehand, was blasted by officials on Thursday.

"These actions will only confirm the concerns that an increasing number of countries are expressing about the behavior of Big Tech companies who think they are bigger than governments and that the rules should not apply to them," wrote Australian Prime Minister Scott Morrison perhaps pointedly, in a post on Facebook that criticized the company's decision to "unfriend" his country. "They may be changing the world, but that doesn't mean they run it."

While Facebook has said that it enacted its ban with a "heavy heart," and that it would reverse the restrictions on pages it said were "inadvertently impacted" by it, the company has otherwise stood by its decision.

"What the proposed law introduced in Australia fails to recognize is the fundamental nature of the relationship between our platform and publishers," Campbell Brown, Facebook's vice president of global news partnerships, wrote in a blog post Wednesday. "I hope in the future, we can include news for people in Australia once again."

"It's a massive show of power," said Belinda Barnet, a media and communications lecturer at Swinburne University in Melbourne. "Facebook hasn't budged."

While shocking in its implementation, Facebook had been telegraphing its decision. The company raised the idea of a block on news content last month during a hearing of the Australian Senate.

There was already a "deterrent effect of this law on investment in the Australian news industry," Simon Milner, Facebook's vice president of public policy for Asia Pacific, told lawmakers, citing a recent decision from his team to launch a news product in the United Kingdom in which it pays publishers for access to content, instead of Australia.

Google looks for deals


For a while, it was fellow California-based tech behemoth Google — not Facebook — that appeared more ready to wade into the firestorm.

Last August, Google used its homepage to warn Australians that the proposed law would harm their ability to search and lead to "consequences" for YouTube users.

And at last month's Senate hearing, Google's Australia chief Mel Silva warned that "if this version of the code were to become law, it would give us no real choice but to stop making Google Search available in Australia."

The threat immediately sparked backlash, including criticism on social media and a sharp rebuke from the prime minister.

"Let me be clear. Australia makes our rules for things you can do in Australia. That's done in our parliament. It's done by our government," Morrison said at the time. "We don't respond to threats."

Tensions appeared to be cooling before this week's bombshell. Facebook CEO Mark Zuckerberg and Google CEO Sundar Pichai spoke with Frydenberg, the treasurer, last weekend. Those talks were constructive, according to Frydenberg.

Google, at least, was inking deals — and the treasurer said Facebook had been "relatively close" to doing the same. The social network did not immediately respond to a request for comment about the result of those discussions.

"Everything is pointing in the right direction," the treasurer told journalists on Wednesday.

Australian Treasurer Josh Frydenberg speaking with Facebook CEO Mark Zuckerberg via video call on Jan. 28.


While it was ultimately Google that gave some ground, Facebook's dramatic blockade might come back to bite the company. It didn't just block content from news pages: Australian users woke up Thursday to find the accounts of fire and emergency services, domestic violence charities, and government health agencies affected, too.

Facebook is reinstating pages that it didn't intend to block, but the initial response will be costly for the company, according to Rob Nicholls, associate professor of regulation and governance at the University of New South Wales' business school.

"It doesn't matter if it's deliberate ... these are horrible things to do, even accidentally on a short term basis," Nicholls said. "It's dumb."

Google, meanwhile, has bought itself some goodwill by forging new partnerships with newsrooms. Two of the deals — with Seven and Nine — are reportedly worth as much as 30 million Australian dollars (about $23 million) a year, though financial terms were not disclosed. The companies declined to comment.

The amount is a drop in the bucket for a company like Google, noted Nicholls. The company raked in some $180 billion in revenue last year. But the money could be significant for media publishers who have struggled financially for years.

"What's really odd is that Facebook didn't go ahead and do the same thing," Nicholls said. "It's a high-stakes game, and it is very risky."

Now, experts say that lawmakers could retaliate by further targeting Facebook. The bill — which passed this week through Australia's House of Representatives and is expected to become law, should it clear the Senate — could still be amended to include certain provisions for Facebook's other properties, such as Instagram, according to Nicholls.

"We will continue to engage with the government on amendments to the law, with the aim of achieving a stable, fair path for both Facebook and publishers," a Facebook spokesperson said.

Google, on the other hand, could potentially get a pass: Frydenberg did not rule out the option this week when asked whether he would decide to exempt it from the bill.

"I don't want to pre-empt any decisions that I may or may not take," he said. "But what I have said is if commercial deals are in place, then it changes the equation."

"I think Google read the room better," Barnet told CNN Business. "Google wins in all this."

Newsletter

Related Articles

London Daily
0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
You Are So Beautiful
Rob Schneider explains California reparations legislation.
Postmodern Jukebox European Tour Version
Who knew badminton could get so intense?
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Farmers break through police barriers in Brussels.
Sattahip Motor Show 20
London's Iconic British Telecom Tower Sold To Become Hotel
SONATE AU CLAIR DE LUNE - Moonlight sonata
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
A kiss to build a dream on
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Russia Claims UK Cultural Agency Spied for Ukraine
Mean Blues
Apple warns against drying iPhones with rice
La Chansonnette
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
Pattaya Addicts
German economy is in 'troubled waters' - ministry
Franz Liszt - Liebestraum - Love Dream
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Dream a little dream of me
New video
Unchained Melody sung like you've NEVER heard!
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Dave Brubeck - Take Five
Russia is rebuilding capacity to destabilize European countries, new UK report warns
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
EU Commission wants anti-drone defenses at Brussels HQ
Rondo Alla Turca
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
Kiss of fire
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Prince William Urges End to Gaza Conflict
Israel Cachao López - Guajira Clásica
UK court to hear Assange's final appeal against extradition to the US, where he faces charges related to his journalistic work—the publication of a classified video in 2010 that exposed US war crimes against humanity.
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
About 50-60% kids either chose to be YouTuber or influencer
Strauss - Radetzky March - Karajan
A viral video of Nationals MP Barnaby Joyce lying on a Canberra footpath is celebrated by his media mates.
La vie en rose
European Countries React to Navalny's Death by Summoning Russian Diplomats
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
Orlando Cachaito Lopez Redencion
English farmers to be offered ‘largest ever’ grant scheme amid food security concerns
Edith Piaf - NON, JE NE REGRETTE RIEN
Cameron government knew Post Office ditched Horizon IT investigation
RADETZKY MARCH-2008-Wien, New Year Concert
EU Calls for Immediate Ceasefire in Gaza Conflict
Only you (And you alone)
EU Vows To Hold Putin "Accountable" After Meeting Alexei Navalny's Wife
Strangers In The Night
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
Charles Aznavour - La Boheme
The EU Initiates Naval Mission to Defend Red Sea Trade Routes
Summer time
EU and UK Announce Joint Effort on Migration
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Brazil's Lula Likens Gaza Operation to Holocaust, Israel Says "Red Line" Crossed
Aux Champs Elysees
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Microsoft-backed OpenAI valued at $80bn after company completes deal
La Mer (Beyond the Sea) – Avalon Jazz Band
‘Alexei would want to tell Russia not to give up fighting’
She
Rwandan Footballer's Dismissal Sparks Concerns Over UK Asylum Plan
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Whisky Challenges China's Baijiu Market During New Year Celebrations
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
Radiohead - Creep
Putin Critic Alexei Navalny's "Killers" Refusing To Hand Over Body, Say Allies
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
"Historic Step": Zelensky Signs Security Pact With Germany
Perhaps, Perhaps, Perhaps - Multi-Couples
"Historic Step": Zelensky Signs Security Pact With Germany
Pentatonix Havana
20 Tech Giants Sign Effort To Fight AI Election Interference Across Globe
Paula Cole - Autumn Leaves
Joe Biden Accuses Putin of Causing Navalny's Death
Oscar Benton Bensonhurst Blues
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
OH NANANA vs ABUSADAMENTE
Tucker Carlson grocery shopping in Russia. This is so interesting.
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
Julian Assange's Wife Warns of His Death if Extradited to US
NIGHTWISH - The Phantom Of The Opera
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Motorshow 2016 Tanjay Negros Oriental
Greece Legalizes Same-Sex Marriage and Adoption Rights
Monica Bellucci - Ti Amo
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Michael Jackson - Billie Jean Milena The Voice France 2018
In Britain Homeowners are receiving CPO’s (Compulsory Purchase Orders) so their homes can be redistributed to migrants
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×