Facebook and Google are arguably the largest content providers in the world. They have, in some cases, become the sole source of content for users. The companies have played the role of content aggregator and ad providers for many years. However, some countries are beginning to take a hard look at how they could have played a role in the slow demise of news outlets over the years.
The main issue being looked at in a lot of countries is the distribution of ad revenue. In most of these countries, the argument is that Facebook and Google’s hold on an unprecedented share of ad revenue has led to the decline in overall revenue for news outlets. This has led to an increased scrutiny by governments. Unsurprisingly, governments are beginning to argue that companies such as Google and Facebook should be paying for the content they are using on the platform.
The latest country to seriously consider the possibility of introducing such laws is Australia. The country has ordered that its Competitions and Consumer Commission (ACCC) create a mandatory code of conduct to address the issue. The code of conduct would, essentially, require companies like Facebook and Google to pay for using content generated by others; this would include listing the content. While we’ve already seen similar measures adopted in countries like France, the ACCC’s code of conduct would also require companies to share data, algorithm changes, news ranking and adopt some form of revenue sharing with content companies.
The move to introduce some form of legislation is spurred by the economic impact of COVID-19 on the news and content sectors. The country is also citing the disproportionately large share of online revenue taken by Facebook and Google in the country. A draft of the Australian code of conduct is expected to be prepared by July 2020. However, there is no clear indication of when the code of conduct will finalised.
