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Google is approaching a deal with a major Australian news publisher as lawmakers are discussing plans to get companies to pay for news

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Following the announcement of its deal with Seven West Media on Monday, Google is approaching commerce with several major Australian media, including ABC, Nine Entertainment and Guardian Australia. The country’s engine over the law that will force Google and Facebook to pay domestic media companies for news.

Google will do business with several major Australian news publishers.

Important facts of zz / STRF / STAR MAX / IPx

First Monday, Australia’s largest media entity, Seven West Media, announced that it had signed a long-term deal with a search giant for content to appear in a new product called News Showcase.

Other deals reported by the Sydney Morning Herald and other outlets could reach within 48 hours as they seek to anticipate future discussions in the Australian Parliament about the government’s proposal for media negotiation legislation. There is.

The company is also in talks with other retailers such as Daily Mail Australia and NewsCorp Australia.

In various television interviews, Australian finance officer Josh Frydenberg confirmed that he had met with Google CEO Sundar Pichai and Facebook chief Mark Zuckerberg about the proposed bill.

Frydenberg told Sky News that he would wait for transaction details before deciding whether the government’s new media negotiation code should be applied to Google’s search engine or Google News showcase.

As part of the deal, Google will pay publishers for certain paywall articles that appear in Google News Showcases.

Main background

Last month, Google threatened to shut down Australian search engines unless the government agreed to withdraw the planned law. According to the government, the proposed news media bargaining code will support smaller media accusing large web platforms like Facebook and Google of benefiting from work without paying. Is designed for. However, both companies claim that news makes up a small portion of their revenue and that such rules are infeasible. Frydenberg confirmed on Monday that the Australian government had agreed to make some technical amendments to the law after discussions with both Google and Facebook.

tangent

Last month, search giants overturned the decision to cancel the launch of the Google News Showcase in Australia and began negotiations with publishers to get them involved. Google argues that the new product is a better way for media companies to pay media companies beyond broader laws that force binding arbitration with publishers to pay for content. There is. Google is trying to close the deal before the bill is submitted to Congress later this week. This could allow the company to avoid a complex arbitration process with the media. Google would also want the law to focus narrowly on just-launched news products rather than its flagship search engine business. Last week, Google signed similar deals worth $ 76 million with several major French publishers.

References

Google approaches news content deal with ABC, Nine and Guardian (Sydney Morning Herald)

Google, Facebook approaching news payments, Australia says (Bloomberg)

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