The Australian government, News Corp and Nine Entertainment have been leading a push to force Facebook and Google to pay 10% of their advertising revenue to media outlets as they struggle to remain profitable online.
The ACCC is working with news outlets and the tech giants Facebook and Google to develop a code of conduct which includes revenue sharing.
Facebook has just outright rejected the idea of revenue sharing and even went as far as saying they will scrap Australian news on it’s platform if it’s forced to pay media outlets. Facebook said removing news from Facebook would not affect it business model in Australia.
The ACCC estimates Facebook and Google earn up to $6 billion per year in advertising and the media giants want their share. However, Google says it only makes $10 Million per year from ads displayed on news websites.
Regional media outlets have already suspended their print mastheads due to Covid-19 and lack of advertisers.
If Facebook pulls the pin on Australian news it will be the final nail in the coffin for regional news online. Regional media simply cannot not survive online without the support of Google and Facebook to spread their content to the relevant readers.
The ACCC has until the end of July to draw up the final code.
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