Facebook CEO Mark Zuckerberg. Source: Michael Reynolds/EPA.
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Facebook CEO Mark Zuckerberg called Australian lawmakers last week to discuss proposed legislation that would make tech giants pay local media outlets for content
  • Zuckerberg “reached out to talk about the code and the impact on Facebook” on a call with Australian Treasurer Josh Frydenberg and communications minister Paul Fletcher
  • While it was reportedly a constructive discussion, Frydenberg said he was not convinced to “back down”
  • According to Frydenberg, the two mega-corporations account for more than 80 per cent of online advertising spending in Australia
  • Both companies have launched public campaigns against the “News Media Bargaining Code”

Facebook CEO Mark Zuckerberg called Australian lawmakers last week to discuss proposed legislation that would make tech giants pay local media outlets for content but failed to persuade them to change their policy.

On a call with Australian Treasurer Josh Frydenberg and communications minister Paul Fletcher, Zuckerberg “reached out to talk about the code and the impact on Facebook.”

“No, Mark Zuckerberg didn’t convince me to back down if that’s what you’re asking,” Frydenberg told the ABC, but withheld any further details.

According to a Facebook spokeswoman in Australia, the social media behemoth’s executives regularly meet with governments on a variety of topics.

“We’re actively engaging with the Australian government with the goal of landing on a workable framework to support Australia’s news ecosystem,” she said.

The proposed legislation mandates that Facebook, along with Google, must negotiate payments with local publishers and broadcasters for content that appears on their websites. In the event a deal fails to be struck, a government-appointed arbitrator will decide for them.

According to Frydenberg, the two mega-corporations account for more than 80 per cent of online advertising spending in Australia, starving newsrooms of their primary revenue source and leading to widespread shutdowns and job losses.

Both companies have launched public campaigns against the ‘News Media Bargaining Code’, with Google threatening to withdraw its search engine service from Australia while Facebook said it might stop Australians from sharing news content on its platform should the laws go ahead.

“We’re told that if we go ahead with this, we’re going to break the internet,” Frydenberg continued, referring to a Senate inquiry this month that saw local heads of both companies outline their opposition to the plans.

The laws are expected to be among the toughest in the world in dealing with the financial impact of global internet companies on domestic media.

“What I do know is that media businesses should be paid for content,” he added.

More From The Market Online
AI concept

The great AI scare sell-off is still permeating Wall Street; a speculative blog from the not-so-distant future stands as the latest culprit

The ongoing tech sell-off in the United States, ironically driven by the larger AI thematic itself, continues to define
US and Aus flag

The XJO benefitted from geopolitical calm last week. New tariff fears perhaps feel more familiar

Last week, I wrote that the ASX200 was having a good week, where Australian investors were reacting to Australian earnings reports and how

Okay, so just where is gold heading? Experts say its nowhere near finishline yet

Leading industry, government and investment groups are still confident that the gold’s bull run is nowhere…
Koala share trading AI

The ASX 200 is up over 4% YTD. What EOY targets are floating around?

It’s been a pretty good year for the ASX200 so far, helped greatly by the ‘commodity supercycle’ narrative – which isn’t really a