Treasurer Josh Frydenberg says Google and Facebook are ‘changing goalposts’ on media code

It is ‘inevitable’ tech giants will have to pay for Australian news used to generate ad revenue says Treasurer Josh Frydenberg.

It is “inevitable” tech giants will have to pay for Australian news used to generate ad revenue said Treasurer Josh Frydenberg, who slammed Google for threatening to pull its search engine from the country.

Mr Frydenberg has hit back at the digital platforms for “changing the goalposts” in an effort to undermine the two-year process behind the federal government’s proposed mandatory media code.

“They were originally against what we were putting forward on algorithms and against what we were putting forward on a final arbitration model,” he said. “Now, it seems they are against paying for any clicks on a search.”

Treasurer Josh Frydenberg has rejected threats from Google and Facebook regarding proposed media code. Picture: NCA NewsWire / David Geraghty

Under the government’s plan, tech companies would be required to pay media companies if they use news stories to attract clicks that generate advertising dollars.

In response Google suggested pulling its search engine from Australia, but Mr Frydenberg said the government would not be swayed by threats.

“It seems that digital giants (did) themselves a big disservice last week when they very openly and publicly threatened the Australian public with pulling out of Australia effectively with (Google) Search if legislation proceeds as it currently stands,” he said.

Mr Frydenberg said the circumstances in which tech platforms would be required to pay for original Australian news content would be decided by “independent experts”.

Google executives have threatened to remove its search engine from Australia if the government’s proposed media code becomes law. Picture: Denis Charlet/ AFP

“My view is that it’s inevitable that the digital giants will be paying for original content,” he said. “The choice for Australia, is we can be world leaders … and first off the rank when it comes to putting in place such a code, or we can follow others when down the track and do it.”

Google’s Australian managing editor Mel Silva told a senate committee hearing on Friday the company was prepared to take drastic action over the proposed code.

“If the Code becomes law, Google would have no real choice but to stop providing Search in Australia,” she said.

“That’s a worst-case scenario and the last thing we want to have happen — especially when there is a way forward to a workable Code that allows us to support Australian journalism without breaking Search.”

Google’s Mel Silva from Google during the Senate inquiry into the news media bargaining code. Picture: NCA NewsWire / Gary Ramage

Facebook’s Simon Milner told the committee while traditional news “enriches” the Facebook community, it provided “almost no commercial value”.

Australian Competition and Consumer Commission chair Rod Sims disputed those claims.

“Facebook want people on their platform … they’re more likely to be on the platform and stay on the platform if people can get access to mainstream credited news,” he said. “Clearly enough people are, and the way they get their news is through their Facebook Newsfeed. It’s interesting it’s called Newsfeed.”