Google attack on media code also an admission

Google Australia boss Mel Silva has launched the tech giant’s first public attack on the proposed news industry code of conduct.

The irony in the scare campaign from Google about the proposed media industry code is it is an obvious admission of the value the platform gains from news content.

How else would Google’s services be impacted by the code unless the news created value for the company?

The draft code is an attempt to govern the way media companies are compensated for the content the platforms use to boost their digital advertising revenues.

Today’s letter from Google Australia boss Mel Silva - warning Australians that “the free services you use are at risk in Australia” - is the tech giant’s first public attack on the code.

Its starting point is a basic lie suggesting Google services are free.

The federal government and the Australian Competition and Consumer Commission are working from the starting point that the services like search are not free, but are offered in return for your data, which is then used to generate advertising revenue for Google.

There is nothing free in the services, especially given Google’s alleged misuse of consents given to use its data.

The ACCC has two cases outstanding against the company on its data use and is in the middle of a long-term study on adtech.

The bottom line is nothing from Google is free; it comes at a price, which is personal data to enable Google to supply information to advertisers.

Its letter argues that under the proposed code, news content providers get a special deal because Google is required to be transparent about its search rankings and algorithms.

Neither are major concessions and should be available to everyone.

That Google would come out fighting against the code was expected. The fact it did so in tacit support of the code’s purpose was surprising.

Media is also valuable to the company.

The code does not require any data disclosure from Google - just transparency.