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SYDNEY: Facebook said on Monday (Aug 31) that it would block news publishers and people in Australia from sharing news on Facebook and Instagram if a proposal to force the American tech giant to pay the media becomes law local for content.
The Australian government said in July that it would require Alphabet’s tech giants Facebook and Google to pay for news provided by media companies under a royalty system that is slated to become law this year.
READ: Australia plans law to force Google and Facebook to share ad revenue with national media companies
“This is not our first choice, it is our last. But it is the only way to protect ourselves against an outcome that defies logic and will harm, not help, the long-term vitality of Australia’s news and media sector,” said Facebook Australia. . Director Will Easton said in a statement released Tuesday.
Following an investigation into the state of the media market and the power of American platforms, the Australian government late last year told Facebook and Google to negotiate a voluntary agreement with media companies to use their content.
After those negotiations failed, Australia’s competition regulator drafted laws that it said would allow news companies to negotiate fair pay for the work of their journalists.
READ: Google criticizes Australian law forcing tech giants to pay for news
Easton said the proposed legislation misinterprets the dynamics of the Internet and will harm news organizations.
Australia’s Communications Ministry did not immediately respond to questions on Tuesday.
