Facebook threatens to block all news from being shared in Australia

Facebook has threatened to stop everyone in Australia from posting or sharing news articles on its platform, reacting to a proposed law demanding it pay local media companies for their work. It seems that if Facebook can't have their content for free, it would rather not have it at all.

In a blog post on Tuesday, Facebook Australia and New Zealand's managing director Will Easton lashed out at draft legislation put forward in July. Developed by the Australian Competition and Consumer Commission (ACCC), the proposed new laws are intended to regulate dealings between tech giants and local news outlets, ensuring negotiating power is more balanced and preventing publishers from being exploited.

Of course, Facebook is perfectly fine with the balance of power now, and less than thrilled about the Australian government trying to intervene.

"Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram," wrote Easton.

Facebook has also pushed out a notification to users, stating its Terms of Service will be updated from Oct. 1 to allow it to remove or restrict access to any content it thinks could cause it legal trouble.

"The proposed law is unprecedented in its reach and seeks to regulate every aspect of how tech companies do business with news publishers," Easton continued. "Most perplexing, it would force Facebook to pay news organisations for content that the publishers voluntarily place on our platforms and at a price that ignores the financial value we bring publishers."

Like Google before it, Facebook is using notifications to alert users to its concerns regarding the Australian legislation.Credit: facebook, Screenshot by mashable

Facebook claims it has sent billions of clicks to Australian news outlets this year "at no charge" — traffic it estimates was worth around AU$200 million. The tech giant didn't pay these companies any actual money though, despite enjoying the engagement their work gave Facebook. Rather, publishers' income largely comes from subscriptions and advertising they implement on their sites.

So basically, Facebook's paying Australian media companies in exposure.

Facebook also minimised the actual value it gets from having local publishers on its platform, stating that news is "not a significant source of revenue" for the company.

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"Still, we recognize that news provides a vitally important role in society and democracy, which is why we offer free tools and training to help media companies reach an audience many times larger than they have previously," wrote Easton.

It all sounds rather high-handed — Facebook giveth, and Facebook taketh away. The company appears to be warning that local publishers need it more than it needs them, so the ACCC should tread lightly.

SEE ALSO:Australia will make Facebook and Google pay media organisations for content

The Australian government ordered the ACCC to develop the mandatory code of conduct back in April, after local media organisations accused Facebook and Google of dragging their feet on negotiating a voluntary one. However, Facebook claims it did engage in discussions, stating it offered to invest more money in Australian news businesses.

"We had also hoped to bring Facebook Newsto Australia, a feature on our platform exclusively for news, where we pay publishers for their content," wrote Easton. "Instead, we are left with a choice of either removing news entirely or accepting a system that lets publishers charge us for as much content as they want at a price with no clear limits."

To be clear, the proposed legislation is simply designed to let local media outlets negotiate a fair price for their work based on the value provided. It doesn't mean a tiny one-person Australian operation can demand billions for five short articles and bring Zuck to his knees. So if the benefit local news provides is as "negligible" as Facebook claims, the $836.6 billion company should have no problem paying for what small value it does get.

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Google already began rallying its users against the proposed law last month, attempting to portray the issue as a matter of user privacy and access to free services. Like its fellow tech titan, Facebook's statements seems specifically designed to rile people up against the Australian government.

The legislation is still only a draft though, with ACCC Chair Rod Sims encouraging further discussions with impacted parties as they work toward finalising it.

"The draft media bargaining code aims to ensure Australian news businesses, including independent, community and regional media, can get a seat at the table for fair negotiations with Facebook and Google," said Sims, calling Facebook's threats "ill-timed and misconceived."

"Facebook already pays some media for news content," he said. "The code simply aims to bring fairness and transparency to Facebook and Google’s relationships with Australian news media businesses."

When reached for comment, Facebook referred Mashable to Easton's statement.

UPDATE: Sept. 1, 2020, 5:31 p.m. AEST This article has been updated to include Facebook's notification regarding its terms of service.

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