SYDNEY: Facebook on Monday (Jun 15) rejected calls from the Australian government and news companies that it share advertising revenue with the media, suggesting it would rather cut news content from its platform.
The US tech giant said in a submission to Australia's competition watchdog that news represents a "very small fraction" of the content in an average user's news feed.
"If there were no news content available on Facebook in Australia, we are confident the impact on Facebook's community metrics and revenues in Australia would not be significant," it said in a thinly veiled threat to boycott local news companies.
"Given the social value and benefit to news publishers, we would strongly prefer to continue enabling news publishers' content to be available on our platform," it said.
In an effort being closely watched around the world, Australia is set to unveil plans to force Facebook and Google to share advertising revenue they earn from news featured in their services.
The initiative has been strongly pushed by Australia's two biggest media companies, Rupert Murdoch's News Corp and Nine Entertainment.
They argue that the crisis roiling the news industry worldwide is mainly because of Google, Facebook and other large tech firms capturing the vast majority of online advertising revenues, without fairly compensating media companies for advertisements placed against news content.
The loss of advertising dollars that previously flowed to newspapers has forced cutbacks and bankruptcies across the sector, a process exacerbated by the economic downturn caused by the coronavirus pandemic.
In Australia, News Corp, Nine and other media have both announced major cuts in editorial staff, with more than 170 newsrooms and newspapers suspended or shuttered in recent years.
Australia's competition regulator, the ACCC, has estimated that GRead More – Source