How Big Tech was humbled Down Under

An Australian law forcing tech companies to share their profits with news organisations is a crucial test of the evolving power relations between governments, the media and big tech, says Simon Wilson

Australian Treasurer Josh Frydenberg
Josh Frydenberg: Australia’s fight is but the opening skirmish in a global battle
(Image credit: © STEFAN POSTLES/EPA-EFE/Shutterstock)

What’s the background?

Following a near three-year inquiry by Australia’s competition authority, in July its government published a new draft law that aims to redress the power imbalance between the US digital media giants and traditional news publishers. The aim of the proposed News Media Bargaining Code, which is now going through Parliament, is to get the likes of Facebook and Google to pay a small cut of revenues to news publishers whose stories help drive online traffic, but whose industries and business models have been savaged by the rise of online media. Under the code, Facebook and Google (in the first instance) will be obliged to negotiate commercial deals with news outlets (individually or collectively), or face terms imposed by arbitration. The tech giants will face fines of up to £5.6m (A$10m) for breaking agreements. They also have to give news outlets notice of changes to search algorithms affecting them, and share their use of consumer data taken from news content.

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Simon Wilson’s first career was in book publishing, as an economics editor at Routledge, and as a publisher of non-fiction at Random House, specialising in popular business and management books. While there, he published Customers.com, a bestselling classic of the early days of e-commerce, and The Money or Your Life: Reuniting Work and Joy, an inspirational book that helped inspire its publisher towards a post-corporate, portfolio life.   

Since 2001, he has been a writer for MoneyWeek, a financial copywriter, and a long-time contributing editor at The Week. Simon also works as an actor and corporate trainer; current and past clients include investment banks, the Bank of England, the UK government, several Magic Circle law firms and all of the Big Four accountancy firms. He has a degree in languages (German and Spanish) and social and political sciences from the University of Cambridge.