Saturday, 23 January 2021

Google is considering to stop search in Australia due to media code

The Australian government and ACCC want to introduce news media bargaining code:
https://www.accc.gov.au/focus-areas/digital-platforms/draft-news-media-bargaining-code

The new code is a threat to #netneutrality giving large media companies (News and Nine) ways to gain advantages over a level playing field of content creators (by receiving money, data and search ranking algorithm advanced notification). It would force Google/Facebook to pay legacy media companies for links (not contents, but links!). Note these are the same media companies that peddle unbalanced right wing views and provide misinformation about climate change by casting doubt on climate science thereby intentionally misleading the public. In the US Murdoch's Fox News was an embarrassing propaganda arm for pro-Trump lies and in recent years we have seen the "Foxification" of Sky News with heavily biased reporting, hence I do not believe that our government needs to prop up failing media companies that ultimately undermine democracy with misinformation and unbalanced journalism. The government should ensure diverse Australian media rather than forcing Google/Facebook to artificially prop up legacy, right wing media companies like News/Nine and proposing to intentionally exclude government media ABC and SBS.

I am all for ensuring Google/Facebook and other large tech companies pay their fair share of tax, then using the tax revenue in whatever manner benefits the Australian community, yet the media bargaining code is just bad policy. 

The key features of the draft code are:

  • only Google and Facebook have so far been identified as digital platform operators subject to the code;
  • news media organisations can participate in the code if they:
    • produce ‘core news’ that is published online (journalism that is on publicly significant issues, journalism that engages Australians in public debate and informs democratic decision making, and journalism relating to community and local events);
    • adhere to appropriate professional editorial standards (which may be set out, for example, in media industry codes or standards set by the Press Council);
    • are editorially independent (designed to exclude advertorial content or self-published materials like corporate or government publications or union publications);
    • operate in Australia to serve Australian audiences; and
    • have an annual revenue of greater than $150,000, in either the most recent financial year or in three out of the five most recent financial years.
  • once registered, eligible news media businesses can then engage in negotiations (individually or collectively) with the digital platforms for payment for news content.  The negotiations are subject to a ‘negotiate-arbitrate’ model, whereby fixed timelines apply to commercial negotiations, after which the parties submit to mandatory and binding arbitration process, the outcome of which is effectively a price for content, set for the next 12 months; and
  • additionally, the digital platforms are required to provide advance notice of changes to their algorithms where that impacts on the ranking of news, appropriately recognise original news content, and provide various data points regarding user interaction with news content. 
Murdoch expects $1 billion just from Google alone:
"Rupert Murdoch’s News Corp reckons it’s $1 billion.  News and Nine Entertainment have enlisted the Government and the ACCC in their battle to force Google to pay for their news content. Nine’s Peter Costello thinks it’s at least $600 million a year. News Corp boss Michael Miller reckon it’s more like $1 billion. Facebook has had little to say on the matter, but Google’s Australia CEO, Melanie Silvia, suggests it is no more than $10 million."

Google suggests the code is unworkable:
  • It forces Google to pay to show links in an unprecedented intervention that would fundamentally break how search engines work. No website and no search engine pays to connect people to other websites, yet the Code would force Google to include and pay for links to news websites in the search results you see. This sets the groundwork to unravel the key principles of the open internet people use every day—something neither a search engine nor anyone who enjoys the benefits of the free and open web should accept.
  • It requires us to give news publishers special treatment—14 days’ notice of certain changes to algorithms and ‘internal practices’. Even if we could comply, that would delay important updates, drive up operating costs, and mandate special treatment to news publishers in a way that would disadvantage everyone else.
  • It imposes an unfair and unprecedented baseball arbitration model that considers only publishers’ costs, not Google’s; incentivises publishers to make ambit claims and resort to arbitration rather than good-faith negotiations; assumes that the internet has never required payments for links because of ‘bargaining imbalance’; and requires the decision-maker to choose a single ‘final offer’.

Many content creators believe the code is deeply flawed, see #OurYoutube petition:


Why prop up legacy media when trust in legacy media is low? Is fake news good for democracy?:

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