Facebook to Restore News Sharing in Australia

Facebook to Reinstate News Sharing in Australia

Facebook has announced its intention to resume allowing news content to be shared on Australian users’ feeds within the next few days. This decision follows an agreement reached with the Australian government.

Last Wednesday, the social media company implemented significant restrictions on news content accessible in Australia. This action was taken in response to a disagreement concerning a proposed media bargaining code currently awaiting a vote into law.

The Media Bargaining Code

The core of the dispute lies in the code’s requirement for Facebook, alongside other major technology companies such as Google, to establish revenue-sharing arrangements with publishers. These agreements would cover content disseminated on their respective social media platforms.

According to reports from Seven News, Australian Treasurer Josh Frydenberg stated that modifications have been made to the code. These changes aim to “provide further clarity to digital platforms and news media businesses regarding the code’s intended operation.”

Amendments to the Code

The revised code now incorporates a two-month mediation phase. This period allows digital platforms, including Facebook, and publishers to negotiate agreements before being compelled to enter arbitration.

Furthermore, the Australian government will evaluate existing commercial agreements between tech platforms and local publishers. This assessment will precede any determination regarding the code’s applicability, and platforms will receive a month’s notice before a final decision is made.

Facebook’s Response

William Easton, Managing Director of Facebook Australia and New Zealand, expressed the company’s “satisfaction” with the alterations. He indicated that the changes address Facebook’s primary concerns.

Specifically, these concerns revolved around ensuring commercial arrangements that appropriately acknowledge the value Facebook’s platform delivers to publishers, in relation to the value received by Facebook from them.

Impact of Previous Restrictions

Prior to the agreement, Facebook’s restrictions prevented Australian publishers from sharing or posting news content on Facebook Pages. Australian users were also unable to view or share news content, whether originating from Australian or international sources.

Background of the Code

In April 2020, the Australian government announced its intention to enact a mandatory code. This code would require Google, Facebook, and other tech giants to compensate local media outlets for the reuse of their content.

This move followed the failure of an earlier attempt to establish a voluntary code with these companies.

Previous Threats from Tech Companies

As it actively opposed the proposed legislation, Facebook initially threatened to restrict news content sharing in Australia as early as September of last year. Google similarly warned that user experience in Australia could be negatively impacted and suggested the potential discontinuation of free services within the country.