Tech giants made to pay for using news publishers' content

Australia's government is to make Google and Facebook pay local media organisations for their content.

Australian Treasurer Josh Frydenberg © Rohan Thomson/Getty Images
© Getty

In the latest twist in the debate over whether the tech giants are “unfairly benefiting from news articles that they link to”, the Australian government will force Google and Facebook to pay local media organisations for their content, says Mike Cherney in The Wall Street Journal.

While publishers have “long sought” compensation from Google and Facebook, which boost their own traffic by including news links, the tech giants have resisted paying for news content. They insist that publishers benefit by getting large amounts of traffic directed to them. Australia’s treasurer Josh Frydenberg (pictured) said the amount that the tech giants would be told to pay to local media organisations would be in the “millions of dollars”.

Advertisement - Article continues below

No wonder Australia has acted, says Jeffrey Goldfarb, for Breakingviews. After all, Google and Facebook account for “some 71% of spending in the $5.8bn online advertising market”, while the government has promised to help broadcasters and newspapers who are desperate for money. Still, the sums raised “probably won’t be enough” to save many “struggling” media companies.

And there’s always the possibility that Google and Facebook could simply “pull news content” from their Australian searches if the law required them “to pay for using it”, says Margaret Simons in The Guardian. After all, when Spain made payment compulsory, Google simply ended Google News for that country. However, with regulators across the world starting to work together it is hard to see how the tech giants can avoid agreeing a deal eventually.




The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Investment strategy

The tech stock bubble continues – but wise investors should look for value elsewhere

As tech stocks continue to soar, real value has been forgotten. It’s fine to hold tech, says Merryn Somerset Webb, but investors should look for value…
9 Sep 2019

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Most Popular


These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020

Disease, rioting and mass unemployment – so why are markets soaring?

Despite some pretty strong headwinds in the last year, America’s S&P 500 stock index is close to all-time highs. John Stepek explains why markets seem…
4 Jun 2020
EU Economy

Why a stronger euro is good news for investors

The fragile state of the eurozone has for a long time brought the threat of deflation. But the ECB’s latest moves have dampened those fears. John Step…
5 Jun 2020