This news has been received from:

All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.

FACEBOOK and Google will have to pay media companies for news hosted on their platforms, the Australian government has said.

The move, announced today by Treasurer Josh Frydenberg, is a world-first, and will see the tech giants pay for content through a royalties-style system.

4FACEBOOK and Google will have to pay Australian media companies for hosting their content, the country's government has saidCredit: Reuters 4There have long been calls for companies like Google to have to pay for media outlets' contentCredit: Alamy 4Facebook has been accused of hoovering up media companies' revenue in countries around the worldCredit: Alamy

There have long been calls for both companies to be made to pay if they want to publish snippets of articles from online outlets on their platforms.

Media companies also say they have lost millions in advertising revenue to Google and Facebook in recent years, with almost a third of all cash spent on online advertising in Australia currently going to one of the two.

In April, the country's federal government asked its Competition and Consumer Commission to develop a mandatory code of conduct that would address "power imbalances between Australian news media businesses and… Google and Facebook".

Speaking to reporters in Melbourne, Frydenberg said: “It’s about a fair go for Australian news media businesses.

"It’s about ensuring that we have increased competition, increased consumer protection, and a sustainable media landscape.

“Nothing less than the future of the Australian media landscape is at stake.”

A law to enforce the new system will be brought in later this year.

Responding to the announcement, Michael Miller, Executive Chairman of News Corp Australia, a branch of Rupert Murdoch's News Corp, said: “While other countries are talking about the tech giants’ unfair and damaging behaviour, the Australian government... [is] taking world-first action.”

But Google said the decision failed to take into account the "billions of clicks" it directs to the websites of Australian media companies every year.

“It sends a concerning message to businesses and investors that the Australian government will intervene instead of letting the market work,” Mel Silva, managing director of Google Australia and New Zealand, said in a statement.

“It does nothing to solve the fundamental challenges of creating a business model fit for the digital age.”

The announcement comes just days after the heads of four of the world's biggest tech companies, including Facebook's Mark Zuckerberg and Google's Sundar Pichai, testified in the US Congress to defend themselves against allegations that their firms were abusing their market power.

The hearing came after a year-long investigation by the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law.

Most read in TechPORN PANICThousands of naked selfies and videos from OnlyFans site leaked onlineRevealedREAD ALL ABOUT ITGenius Instagram trick lets you read DMs without the sender knowingAPPLE CRUMBLEWhich iPhones are 'obsolete' and 'dangerous' in 2020? The full listPOWER UPSix reasons why your iPhone might be charging slowly – and how you can fix itBUDDY UPHow to see the Facebook friend requests you've sent – and find out who BLANKED youLOGGED!Your iPhone has a hidden map of EVERYWHERE you go – how to find it

The subcommittee gathered 1.3million documents and conducted hundreds of hours of interviews to probe the behaviour of the companies.

The exact complaints against each differ, but the firms are broadly accused of using their market share to push out rivals and overcharge the customers who are dependent on them.

4The news comes days after Google's Sundar Puchai and other tech heads testified in the US Congress over alleged abuse of powerCredit: Alamy Live News

News Source:

Tags: facebook google media companies the australian have to pay

3 inmates, 2 staff injured in south Georgia prison unrest

Next News:

ADT stock soars 65% after $450 million Google investment

New York (CNN Business)Shares of home security business ADT (ADT) rose sharply on Monday after the company announced a $450 million investment from Google (GOOGL).

ADT stock rallied some 65% after the opening bell in New York, after jumping in premarket trading. Google shares had inched higher in premarket but were modestly lower after regular trading began.Google's investment bought a 6.6% stake in ADT to kick off a long-term partnership. The two companies plan to create smart home software and services using Google's Nest hardware and ADT's security expertise.
    Both companies have also committed $150 million in the partnership to cover marketing, product development, technology and employee training.

    Other News

    • Facebook Fact Checks But Does Not Remove Another Video Manipulated To Make Pelosi Appear Drunk
    • Google Pay will support mobile checking accounts starting next year
    • Google Announces $450 Million Investment In ADT Home Security
    • BBVA will soon offer a bank account through Google Pay
    • Thai Minister Threatens Facebook With Legal Action Over Restriction Requests
    • Owners of NYC riverboat busted for hosting more than 170 people
    • Owners of NYC riverboat busted for hosting more than 170 people at party
    • Humpback whale injures Australian swimmer at Ningaloo Reef, reports say
    • China, Australia spar on Twitter over South China Sea
    • The Latest: Australia to pay isolating workers in hot spot
    • Two owners of a popular NYC party riverboat are arrested for defying COVID-19 social distancing guidelines and hosting more than 170 people for a 1920s-themed party around Manhattan
    • Coronavirus South Australia: Two much more circumstances, new limitations coming
    • Plane so stuffed with cocaine it crashed during take-off
    • Five Bedrooms is the Australian romantic series we didnt know we needed
    • All those pandemic pay cuts Americas top executives were taking? Eh, not so much
    • Australia Declares State Of Disaster In Victoria After Huge Spike In COVID-19 Cases
    • Kyrgios skipping U.S. Open, urges players to act responsibly
    • Australia-bound plane was so packed with cocaine it crashed after takeoff: police
    • Trump Thinks Australias Outbreak Vindicates His Coronavirus Leadership. The Opposite Is True.