World

FB news blackout simply wrong, says Aussie govt

Move shows ‘immense market power of these digital media giants’, says treasurer

Updated 5 years ago · Published on 18 Feb 2021 12:00PM

FB news blackout simply wrong, says Aussie govt
Australia’s competition watchdog maintains that for every US$100 spent on online advertising, Facebook takes US$28. – Screen grab, February 18, 2021

BRISBANE – Australia today slammed Facebook as “heavy-handed” and “wrong” to impose a news blackout over a law forcing it to pay for content, warning that the ban shows the immense power of internet giants.

Facebook and other tech firms have pushed back hard against Australia’s world-first legislation, fearing it could create a global precedent and hit their business model.

From early today, Australians were unable to post links to news articles or view the Facebook pages of local and international news outlets, while users logged in overseas cannot view Australian news pages.

“Facebook was wrong. Facebook’s actions were unnecessary, they were heavy-handed, and they will damage its reputation here in Australia,” said Treasurer Josh Frydenberg.

He stressed that the government remains “absolutely committed” to implementing its plan, which passed the House of Representatives late yesterday and is now before the Senate.

“What today’s events do confirm for all Australians is the immense market power of these digital media giants.

“These digital giants loom very, very large in our economy and on the digital landscape.”

His criticism comes hours after he tweeted that he had a “constructive discussion” with Facebook CEO Mark Zuckerberg.

Several emergency services were also caught in the blackout – with government pages alerting the public to Covid-19 outbreaks, bushfires and cyclones rendered blank, as well as the pages of domestic violence helplines and charities.

A Facebook spokesman said official government pages “should not be impacted by today’s announcement”, and the company “will reverse any pages that are inadvertently impacted”.

Some non-news sites caught up in the blackout gradually returned throughout the day.

Human Rights Watch Australia director Elaine Pearson described the block – which has also impacted indigenous community pages and even Facebook’s own page – as an “alarming and dangerous turn of events”.

“Cutting off access to vital information to an entire country in the dead of night is unconscionable.”

Media groups and the Australian government have also raised concerns that blocking verified news sources will allow misinformation to proliferate.

‘A stark choice’

Several Facebook pages that regularly promote misinformation and conspiracy theories are unaffected by the ban.

Communications Minister Paul Fletcher said the platform needs to think “very carefully” about blocking the pages of organisations that employ professional journalists with editorial policies and fact-checking processes in place. 

“They’re effectively saying any information that is available on our site does not come from these reliable sources,” he told public broadcaster ABC. 

“I would imagine that on quite sober reflection, they will start to become quite troubled about what that would mean for how their platform is perceived.”

Facebook said it has no choice but to implement the news block.

“The proposed law fundamentally misunderstands the relationship between our platform and publishers who use it to share news content,” said William Easton, manager for Australia and New Zealand.

“It has left us 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.”

Facebook’s hardball response contrasts with Google, which, in recent days, has brokered deals with media groups, including Rupert Murdoch’s News Corp.

News Corp was the last major private media group yet to make a deal, and was instrumental in pushing the conservative Australian government to tackle the tech giants.

Pressure to share revenue

Easton said the firm has argued to Australian officials that “the value exchange between Facebook and publishers runs in favour of the publishers”, and generates hundreds of millions of dollars of revenue for the media organisations in the country.

“We’ve long worked toward rules that would encourage innovation and collaboration between digital platforms and news organisations.

“Unfortunately, this legislation does not do that. Instead, it seeks to penalise Facebook for content it didn’t take or ask for.”

Australia’s competition watchdog, however, has maintained that for every US$100 (RM403.75) spent on online advertising, Google captures US$53, Facebook takes US$28, and the rest is shared among others, depriving media outlets of revenue needed to support journalism.

The situation is mirrored in other parts of the world where tech platforms are facing increasing pressure to share revenue with news media. – AFP, February 18, 2021

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