Facebook, Google set to pay for Aussie content after ACCC ruling

The billions of dollars tech titans like Google and Facebook strip from traditional media outlets each year has directly led to a reduction in coverage of courts, councils, health and science. The era of free-riding is at an end, writes John Rolfe.

• Tech giants will be forced to pay for Aussie news content

If you are reading this then you likely care about the future of journalism in this country.

It is hard to overstate the importance to that future of the decision by the federal government to impose a mandatory code covering the commercial arrangements between Google and Facebook and local media businesses, including payment for news content.

The billions of dollars that the tech titans strip from traditional media outlets each year has directly led to a reduction in coverage of courts, councils, health and science.

That’s not my opinion – it’s what the Australian Competition and Consumer Commission found in its in-depth investigation into the impact they have had on our society.

Facebook and Google will be forced to cough up for the Australian news content used on their platforms. Picture: AFP

The devil will be in the ­detail of the mandatory code.

How will the price of news be calculated? Broadly, there are two options.

The first is the ACCC could specify the method. For instance, it could say Google and Facebook have to pay a fixed amount per click or per article. A distribution licence fee is another way the competition watchdog could set the price.

The second option is it could come up with a framework which has an absolute deadline followed by arbitration. That would leave it to the parties to work out exact terms. But the overall time frame would need to be short and there would have to be an outcome. The ACCC could be the arbiter. It’s all yet to be ­determined.

Treasurer Josh Frydenberg wants a system in place by November. Picture: AAP Image/Mick Tsikas

That latter path seems to offer more flexibility.

While Australia is leading the world in taking on the digital platforms, it is not alone. Earlier this month France said Google would be forced within three months to negotiate with media companies.

The era of free-riding is at an end. Up to 14 per cent of Google searches see a “Top stories” section created above “Top results”. That tells you how important news is to its business. It’s time to start paying a quantum that reflects that importance.