Tech Giants Google and Facebook Pledge $300M Annually for US Journalism
In a significant shift, tech giants Google and Facebook have each committed to investing $300 million annually for the next three years to support local journalism in the US. Meanwhile, Australia has implemented a groundbreaking law, the News Media Bargaining Code, to ensure fair compensation for news content used by these platforms.
The Australian model, enforced since February 2023, mandates that Facebook and Google negotiate deals with news publishers for using their content. If negotiations fail, platforms risk having news links removed. This 'negotiate/arbitrate' model, championed by the Australian Competition and Consumer Commission (ACCC) led by Chair Rod Sims, aims to facilitate a fair commercial agreement for news content.
Critics argue that the process lacks transparency, with negotiations between platforms and publishers happening behind closed doors. Ben Smith, in a conference on 'The Future of Journalism And Democracy', suggested that Facebook's deals with publishers may be influenced by pressure and adverse coverage, raising concerns about potential extortion. However, the ACCC maintains that the code's objective is to enable a proper commercial deal for content produced.
The Australian model is gaining global attention as a potential solution to reshape media economies. Dan Froomkin's article in Washington Monthly delves into the complex relationship between Facebook and the New York Times, highlighting the embedded nature of these platforms in news media institutions.
The US and Australia are leading the way in addressing the complex issue of tech platforms and news content compensation. While the Australian model offers a novel approach, its effectiveness and potential global impact remain to be seen. As discussions continue, the future of journalism and its relationship with tech giants remains a critical topic in the broader conversation about democracy and media landscapes.
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