Technology companies under pressure

The economic dominance of some companies has long been a problem for several countries. Above all the current focus lies on the technology giants of Facebook, Google and Microsoft who have a dominant role in their field. The Australian government recently published a draft law, which would oblige these firms to pay press publishers for the publication of their content.

Australia as a pioneer?

In the course of the past week the Australian Government has put forward a bill that was passed by the lower house of parliament. This bill challenges the dominance of Facebook and Alphabet subsidiary Google in the news market industry by requiring media companies to pay publishers of journalistic articles for their content. The Senate was expected to pass this bill by the end of the week. The reaction from Facebook came only a little while later by blocking all news content in Australia. Thus, Australian users of the social media platform could neither access content nor share previously viewed reports.  Google reacted differently the change in media laws. Until now the company has avoided a direct confrontation with the Australian government. This matter is being closely watched internationally, with other countries such as Canada and the UK considering similar legislation. After many negotiations between the Australian government and the Facebook CEO Mark Zuckerberg, the two parties agreed on a compromise. The company will lift the block on journalistic content in Australia. In return, some adjustments will be made to the Australian government’s draft legislation. The amendments aim to give a more precise application framework and provide clearer guidelines for fair remuneration of business in the news media sector.

Facebook shows its power

Facebook has demonstrated its power following the impending restriction by the Australian government’s bill. The US company’s move to temporarily block the use of journalistic content in Australia has drawn criticism from many other countries. According to the Australian Prime Minister Scott Morrison, such actions only confirm the concerns that more and more countries have about the behaviour Big Tech companies. According to Morrison, they do not abide by existing rules and believe they are bigger than governments. Microsoft President also reacted to Facebook’s behaviour calling it a big mistake.