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The United States urges Australia to abolish the proposed law to force Facebook and Google to pay for news | B97.5 | Your life. Your music.




Paulina Durand

Sydney (Reuters)-The US government has urged Australia to revoke the world’s first bill to force Google on Facebook Inc and Alphabet Inc to pay for news from local media.

In a submission calling on the government to “pause” the plan, U.S. Trade Representatives Daniel Bahar and Karl Ehrers instead told Australia to “further study the market and, where appropriate, voluntary norms. “To formulate” was proposed.

Google and Facebook are subject to compulsory price arbitration if there is widespread political support and, under the law currently in front of the Senate, a commercial agreement on payments to the Australian media cannot be reached. ..

“The U.S. government is concerned that attempts to regulate the competitiveness of certain players through law could have a clear disadvantage to the two U.S. companies,” the letterhead of the document said. Described below. Executive Office of the President.

Such a move could also “raise concerns about Australia’s international trade obligations,” he said.

The Australian government announced a bill last month after a survey revealed that tech giants had excessive market power in the media industry. He states that this situation poses a potential threat to a well-functioning democracy.

Australia’s Treasury Secretary Josh Frydenberg was asked to respond to a U.S. submission in a statement, promising to “promote a compulsory code” to address “imbalances in bargaining power with digital platforms and media companies.” I’m doing it. “

He added that the code followed an 18-month review by the chair of the Australian Competition and Consumer Commission (ACCC) and “extensive consultation” that included the views of both Google and Facebook.

For every A $ 100 spent on online advertising, A $ 53 will be paid to Google, A $ 28 will be paid to Facebook, and A $ 19 will be paid to other media companies, according to an ACCC survey.

Google and Facebook say they consider it unfair and limit domestic offerings after the Australian government has lobbied a strong but unsuccessful attempt to revoke the law proposed by the giants of both technologies. He suggested that he might have to do it.

($ 1 = 1.3014 AUD)

(Report by Paulina Duran, Sydney, edited by Richard Pullin)

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