Responding to Facebook’s announcement on Thursday morning,Communications Minister Paul Fletcher said the government would not back down from legislating the code.
“We’ll be maintaining the path that we’ve been following,” Mr Fletcher told 2GB radio.
He said Facebook’s decision to block authoritative news sources would further expose the company to the spread of misinformation and unverified content.
“It’s very important that we have a diverse and well-resourced news media sector in Australia,that’s a critical part of our democracy. Now,that may not seem important to a company in Silicon Valley,but it’s very important to the Australian government and the Australian people,” Mr Fletcher said.
“They are effectively saying to Australians if you’re looking for reliable news Facebook is not the place to look for it.”
Labor leader Anthony Albanese described Facebook’s actions as “reprehensible”.
The ban appears to have come into effect for at least some users,who are now unable to post links to Australian news articles on their Facebook pages or to see past articles posted by major media companies. Mr Easton’s blog said that not only are Australian outlets restricted from sharing content on Facebook Pages but international articles from newspapers such asThe Wall Street JournalandThe New York Times cannot be viewed or reposted by Australian users.
Nine’s outgoing chief executive Hugh Marks said Facebook’s decision was “a real shock” and showed why the code was needed.
“We thought we were having constructive discussions towards an outcome that was going to be positive for all of us. It seems that behind those discussions all the time was Facebook’s intent at the end of the day to take this action,maybe even despite an agreement with us,” Mr Marks told 2GB radio.
“They are trying to prove how powerful they are. They’ve certainly proven that. The purpose of the legislation is actually trying to deal with that power,so they are kicking a massive own goal.”
ABC’s managing director David Anderson said the national broadcaster was affected and was discussing the change with Facebook.
An internal note to News Corp staff sent by executive chairman Michael Miller said Facebook’s move would encourage fake news to be spread online.
“You will have also seen this morning that Facebook has used its powers to change its algorithms in a way that punishes Australian news media,” Mr Miller said in the email,seen byThe Herald andAge.
“This is a move that clearly encourages fake news over reliable news and demonstrates the extraordinary market power Facebook holds. While we are disappointed in Facebook’s moves today,we have had months of discussions with them to date,and we will continue to do so.”
Facebook’s decision follows multiple discussions between Treasurer Josh Frydenberg and the company’s global chief executive Mark Zuckerberg.
Mr Frydenberg said on Thursday morning he had spoken to Mr Zuckerberg who had raised further issues with the government’s newly proposed laws.
“Yes there are some differences,but let’s see if we can work them through,” Mr Frydenberg said.
Industry sources familiar with the government’s discussions with Facebook said Mr Frydenberg was not given any meaningful notice about Facebook’s plans to follow through with its threat.
News outlets with a relationship with Facebook and which post articles in their newsfeed were informed early on Thursday morning that their content would be affected.
A note sent by Facebook Australia and New Zealand’s head of news partnerships Andrew Hunter,seen byThe Sydney Morning HeraldandThe Age,said the tech platform was “disappointed” that it had to follow through with its threat and that it would engage the news outlets further to discuss the changes in the coming days.
Facebook was in talks with news outlets such as Nine Entertainment Co,owner of this masthead,and News Corp Australia about payment for their content over the past two weeks.
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But those talks stalled in the past five days because of several sticking points,including explicit provisions in Facebook’s contracts that would allow it to blow up any deal if new laws were legislated. The main reason for this is that failure to comply with the code could cost Facebook fines of up to 10 per cent of their local revenue.
Mr Easton said the government’s proposed legislation “seeks to penalise Facebook for content it didn’t take or ask for”.
“This legislation sets a precedent where the government decides who enters into these news content agreements,and ultimately,how much the party that already receives value from the free service gets paid,” he said.
Facebook’s stance represents a different approach to search giant Google,which had also threatened to exit Australia. Google has since struck multi-million dollar deals with major Australian publishers for the use of their content.
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