Facebook and Google in order to display content now have to share advertising revenue and data with the local media companies. This decision was made after considering the complaints by local media that both Facebook and Google have a hold on advertising. Advertising Revenue being the primary source of income for Australian media, this is an unsettled issue.
Statement By Treasurer Josh Frydenberg
Recommendation: Facebook Introduces New Care COVID-19 Hug Reaction To Express Support Amid The Pandemic
Australian’s online advertising market has a worth of $9 billion Australian dollars yearly which has grown significantly over time since 2005. Google and Facebook get around a third for every $100 AUD spent on advertising in Australia. A voluntary code of conduct was asked to be provided by the two companies with respect to the complaints by Australian local media companies. If they do not provide any code of conduct voluntarily then a mandatory code will be applied by the ACCC, Australian Competition, And Consumer Commission.
ACCC has time until Jully to form and submit the draft of the code of conduct which further will be passed into legislation. The mandatory code of conduct will also include guidelines and rules related to the ranking, sharing and displaying of news content. If companies don’t comply with the code of conduct they will then have to pay penalties.
Facebook Australia Managing Director Will Easton Response To Government’s Orders
Statement By Google Spokesperson
This issue has come up at a time when the COVID-19 pandemic has made a loss in ad spend. Printing has been stopped altogether due to the loss in the amount of ad revenue. Some companies have asked their employees to resign or take a pay cut. Overall the code of conduct will most likely fix all the issues.