Google, Facebook slammed for ‘changing the goalposts’

Josh Frydenberg keeps up the pressure on Facebook and Google over their threats to block Australian news in renewed attack.

Josh Frydenberg has accused tech giants of constantly “changing the goalposts” after Google threatened to pull its search engine from Australia in response to the government’s proposed news media bargaining code.

The Treasurer said Facebook and Google had constantly shifted their position on proposed legislation which would force the platforms to pay for news content created by Australian outlets.

“It seems the digital giants keep changing goalposts,” he told reporters in Melbourne on Sunday.

“Originally they were against what we were putting forward on algorithms, then they were against what we were putting forward on a final arbitration model. Now it seems they’re against paying for any clicks on search. They keep changing the goalposts.”

On Friday, Scott Morrison delivered a stern warning to tech titans after Google’s local boss threatened to shut down search and news sharing on their Australian platforms if the federal government’s proposed bargaining code becomes law. Hours after Google Australia managing director Mel Silva made the comments at a Senate committee, the Prime Minister slapped down the suggestion, warning that Australia would not respond to threats.

The landmark legislation includes a final arbitration model to resolve disputes when the tech giants and news companies fail to strike a commercial agreement.

“These are decisions that will be decisions that will be decided by independent experts if a commercial outcome cannot be achieved.” Mr Frydenberg said.

“But it seems that the digital giants did a big disservice last week when they very openly and publicly threatened the Australian public with pulling out of Australia effectively with search if the legislation proceeds as it currently stands.”

Mr Frydenberg also accused Labor of sitting on the fence and not releasing its position on the proposed laws.

“They seem to be getting splinters from sitting on the fence – they’re either for a mandatory code as put forwarded to parliament and now before the committee or they’re against, “ he said.

“My view is that it’s inevitable that the digital giants will be paying for original content.”

Mr Frydenberg said the proposed legislation had already attracted attention from governments and regulators abroad.

“The choice for Australia is we can be world leaders as we are and first off the rank when it comes to putting in place such a code or we can follow others when down the track they do it,” he said.

“We are now in a position to implement a world-leading code, a code that is fair, a code that takes into account mutual value exchange – that is the benefit to digital giants, as well as the benefits to the traditional media businesses.”

The bill will be introduced to parliament in the coming months after a Senate committee delivers its report on the proposed legislation on February 12.