Inevitable Big Tech will pay for Australian news content, says Treasurer

The Treasurer lashes Facebook and Google for ‘changing the goalposts’, after Google Australia’s local boss threatened to shut down search.

Google Australia’s local boss Melanie Silva threatened to shut down search and news sharing on its Australian platform last week. Picture: AFP

Josh Frydenberg has declared it “inevitable” digital giants will pay for original Australian news content, as the Morrison government shores up support for its landmark news media bargaining code.

The Treasurer lashed tech giants Facebook and Google for “changing the goalposts” after Google Australia’s local boss Melanie Silva threatened to shut down search and news sharing on its Australian platform last week if the proposed legislation passes federal parliament.

The code, which was unveiled by the Morrison government in December, aims to fairly compensate news companies for their original content that appears on the digital platforms.

“It seems the digital giants keep changing goalposts,” Mr Frydenberg said.

“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.

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

“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 ramped up pressure on Labor to reveal its position on the media bargaining code, saying he hoped the opposition would offer bipartisan support on such an “important topic”.

The News Media and Digital Platforms Mandatory Bargaining Code Bill was introduced to the House of Representatives in December and referred to a Senate committee, which is due to report by February 12.

Opposition communication spokeswoman Michelle Rowland said Labor had been clear from the start that it would support a “workable code” that resulted in “fair remuneration” for public-­interest journalism. She said the Labor caucus would consider the legislation when parliament returned next week.

While there is growing support for the legislation, One Nation leader Pauline Hanson said One Nation had “no sympathy for either the Australian media or international tech giants in this debate”. Her spokesman said it was unlikely she or her Senate colleague Malcolm Roberts would support the government’s bill.

“As politicians, we have a need to protect political debate in this nation. I have seen conservative voices like One Nation throttled by conventional media and tech giants like Google who are manipulating search algorithms,” Senator Hanson said.

“If Google want to take their bat and ball back to the United States, go for it. I don’t see them paying their fair share of tax in this country and my push will be to enforce our tax laws upon ­whoever fills the gap in the Australian market.”

Centre Alliance Senator Stirling Griff backed the legislation in its current form. Independent South Australian senator Rex Patrick said he was “inclined to support the bargaining code” but would introduce amendments to the bill, including requiring the Australian Competition & Consumer Commission to conduct regulator audits of algorithms used by tech platforms that impact on access of Australian news media.

The Greens have signalled they will vote for the legislation, with communications spokeswoman Sarah Hanson-Young saying it is “time that we regulate Big Tech”.

Prime Minister Scott Morrison delivered a stern warning to the tech titans on Friday.