London Daily

Focus on the big picture.
Sunday, Sep 07, 2025

Australia news code: What’s this row with Facebook and Google all about?

Australia news code: What’s this row with Facebook and Google all about?

A dispute over a planned law that would force tech giants Facebook and Google to pay for news content in Australia is being keenly watched worldwide.

The world-first law aims to address the media's loss of advertising revenue to US tech firms.

If passed, the law could have global consequences for tech firms and how we access news online.

But the tech firms have pushed back, with Facebook restricting news content in Australia.

So, what's the row all about?

How did we get here?


There have long been concerns about the market dominance of tech firms over media organisations.

Google is the dominant search engine in Australia and has been described by the government as a near-essential utility, with little market competition.

And social media is a key source of news.

According to the Reuters Institute Digital News Report 2020, 52% of Australians questioned in a survey used social media as a source of news. Facebook ranked top as a social media news source, followed by YouTube and Facebook Messenger.

In 2018, an Australian government regulator launched an inquiry into the impact of Google and Facebook on competition in media and advertising.

Australia plans to make tech giants pay for news

The inquiry by the Australian Competition and Consumer Commission (ACCC) found an imbalance of power between tech firms and the media.

Given this, the regulator recommended introducing a code of conduct that it said would level the playing field.

In July last year, the Australian government unveiled a draft law to enforce the code, provoking threats from Facebook and Google to withdraw services in the country.

What is the draft news code?


The draft calls on tech companies to pay for content, though it does not define what it is worth.

The law would enable news companies to negotiate as a bloc with tech firms for content which appears in their news feeds and search results.

If negotiations fail, the matter could be arbitrated by the Australian Communications and Media Authority.

Google has said the law could force it to disable its search tool for Australians

Penalties could be up to A$10m (£5m; $7m) per breach, or 10% of the company's local turnover.

The government says the code will initially focus on Google and Facebook, but could be expanded to other tech companies.

Why is Australia pushing this law?


The government has argued that tech giants should pay newsrooms a "fair" amount for their journalism.

In addition, it has argued that the financial support is needed for Australia's embattled news industry because a strong media is vital to democracy.

Media companies, including News Corp Australia, a unit of Rupert Murdoch's media empire, have lobbied hard for the government to force tech firms to the negotiating table amid a long-term decline in advertising revenue.

Facebook, however, argues "the value exchange between Facebook and publishers runs in favour of the publishers", according to its manager for Australia and New Zealand, William Easton, and generates hundreds of millions of dollars of revenue for the media.

"Publishers willingly choose to post news on Facebook, as it allows them to sell more subscriptions, grow their audiences and increase advertising revenue," he adds.

But Australia's competition watchdog - cited by the AFP news agency - says that for every $100 spent on online advertising, Google captures $53, Facebook takes $28 and the rest is shared among others, taking revenue away from media outlets.

Meanwhile, Google's revenues have increased markedly in the same period, amounting to more than $160bn (£117bn) globally in 2019.

How has Facebook reacted?


Facebook has announced that it will block Australian users from sharing or viewing news.

The social media giant said the proposed law "fundamentally misunderstands the relationship between our platform and publishers".

Facebook said the legislation had left it "facing a stark choice: attempt to comply with a law that ignores the realities of this relationship, or stop allowing news content on our services in Australia".

"With a heavy heart, we are choosing the latter," it said.

Facebook imposed the ban with immediate effect, with users reporting that they were unable to see news articles on the platform.

How has Google reacted?


Google has threatened to remove its search engine from Australia if the proposed law is passed.

But Google has now said it has agreed to pay Mr Murdoch's News Corp for content from news sites across its media empire.

News Corp said it would be sharing its stories in exchange for "significant payments".

As part of the three-year agreement, News Corp said it and Google would collaborate on a subscription platform, share advertising revenue and invest in video journalism on YouTube.

Google has also announced deals with several other Australian media companies, including a reported A$30m annual payment to Nine Entertainment.

It is not clear what action Google intends to take if the proposed law is passed.

Could this set a global precedent?


Some Australian politicians and media experts think it could.

Australian Senator Rex Patrick has told Google: "It's going to go worldwide. Are you going to pull out of every market, are you?"

In contrast to Google and Facebook, Microsoft has thrown its support behind the proposed law.

"The code reasonably attempts to address the bargaining power imbalance between digital platforms and Australian news businesses," the software firm said in February.

There's also a different - but similar - row happening in Europe.

A controversial new EU rule on copyright says that search engines and news aggregators should pay news sites for links.

In France, publishers recently agreed a deal with Google on how that should work.

But only a handful of such deals have been signed with notable French newspapers - making it a very different thing than the wide-ranging, much stricter Australian plans.

And there have been other areas of tension between governments and big tech firms, where governments or blocs such as the EU have looked into regulating the firms in question.

What happens next?


The law has broad political support and has passed parliament's lower house.

If it gets through the Senate, the code is designed to be reviewed after a year.


Australians react to Facebook's news ban


Newsletter

Related Articles

0:00
0:00
Close
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Brand-New $1 Million Yacht Sinks Just Fifteen Minutes After Maiden Launch in Turkey
Here’s What the FBI Seized in John Bolton Raid — and the Legal Risks He Faces
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Queen Camilla’s Teenage Courage: Fended Off Attempted Assault on London Train, New Biography Reveals
Scottish Brothers Set Record in Historic Pacific Row
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
×