Last week Facebook made a dramatic U-turn, announcing that it will restore news to its Australian users, says the BBC. Facebook had blocked news after a dispute over a law that “would force it and Google to pay news publishers for content”. While the government claims that the rules will set up a “fairer negotiation process” between the tech giants and news companies over the value of news content, Google and Facebook insist they are unfair, since “it gets little commercial gain from news content”.
The reversal isn’t a complete defeat for Facebook, says the Financial Times. The Australian government has agreed to make changes “that grant Facebook more leeway to negotiate with publishers”. The concessions will give it more “bargaining power” in its talks with News Corp, “the world’s most powerful publisher”. While Facebook has been negotiating with News Corp since December 2017, talks had broken down over what Facebook had considered an “exorbitant price” for the group’s news content.
Still, Facebook’s problems won’t stop with Australia, say Jeff Horwitz and Sarah Needleman in The Wall Street Journal. Australian officials are advising their counterparts “from Canada, Germany, France and Finland” about bringing in “similar rules”. While Facebook is making voluntary payments “of hundreds of millions” to media “partners” to stave off such regulation, the amount of money it is being forced to pay could increase. The costs may even become so “significant” that its margins will disapp
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Four AI ETFs to buyIs now a good time to buy AI ETFs? We examine four AI ETFs that investors might want to add to their portfolio
-
Chase boosts easy-access interest rate - savers could earn 4.75%Chase is offering a boosted interest rate which is fixed for six months, on top of the standard variable rate
-
Share buybacks rise in the UK – what effect will it have?Share buybacks are gaining popularity in the UK – good news for investors
-
Is now the time to buy Marshalls?Former market darling Marshalls, a landscaping and building products supplier, looks too cheap. Is it time to buy this once-admired stock?
-
Top UK stocks with healthy cash flows and dividend yieldsThree promising UK stocks according to Alan Dobbie, co-manager, Rathbone Income Fund
-
Warren Buffet invests in Domino’s – should you buy?What makes Domino's a compelling investment for Warren Buffet's Berkshire Hathaway, and should you buy the UK-listed takeaway pizza chain?
-
4Imprint makes a strong impression – should you buy?4Imprint, a specialist in marketing promotional products, is the leader in a fragmented field
-
Invest in Glencore: a cheap play on global growthGlencore looks historically cheap, yet the group’s prospects remain encouraging
-
How to save the dying UK stock marketThe UK stock market is in long-term decline. To fix that, we must first recognise why equity markets exist and who they should serve
-
Should you invest in Trainline?Ticket seller Trainline offers a useful service – and good prospects for investors
