By Rod McGuirk
CANBERRA, Australia (AP) --Global digital platforms Google and Facebook will be forced to pay for news content in Australia, the government said Monday, as the coronavirus pandemic causes a collapse in advertising revenue.
Treasurer Josh Frydenberg said the Australian Competition and Consumer Commission would release in late July draft rules for the platforms to pay fair compensation for the journalistic content siphoned from news media.
Frydenberg said he believed that Australia could succeed where other countries, including France and Spain, had failed in making Google and Facebook pay.
"We won't bow to their threats," Frydenberg told reporters. "We understand the challenge that we face. This is a big mountain to climb. These are big companies that we are dealing with, but there is also so much at stake, so we're prepared for this fight."
The ACCC had attempted to negotiate a voluntary code by which the global giants would agree to pay traditional media for their content.
But the parties couldn't agree on "this key issue of payment for content," Frydenberg said.
Communications Minister Paul Fletcher said Australia would take a different approach to Europe, relying on competition law rather than copyright law.
Google and Facebook said they had been working to the ACCC November deadline to negotiate a voluntary code.
"We're disappointed by the government's announcement, especially as we've worked hard to meet their agreed deadline," Facebook Managing Director for Australia and New Zealand Will Easton said in a statement.
"COVID-19 has impacted every business and industry across the country, including publishers, which is why we announced a new, global investment to support news organisations at a time when advertising revenue is declining," he added, referring to a $100 million investment in the news industry announced in March.
Google said said it had engaged with more than 25 Australian publishers to get their input on a voluntary code.
"We have sought to work constructively with industry, the ACCC and government to develop a code of conduct, and we will continue to do so in the revised process set out by the government today," a Google statement said.
ACCC Chairman Rod Sims played down the prospect of Google shutting down its Australian news platform rather than pay for content as it had done in Spain.
"Around 10% of search results are media stories. This will seriously affect the usefulness, for example, of Google Search, so I think we have to understand that there's value both ways here and I think it will be hard for Google and Facebook just to say we won't have any contact with news media at all," Sims told Australian Broadcasting Corp.
Michael Miller, Executive Chairman Australasia of News Corp. Australia, the nation's largest newspaper publisher, said, "We are looking for a fair payment and at the same time a substantial payment."
Frydenberg declined to estimate how much Google and Facebook would pay news media, other than to say it would amount to millions of dollars.
Google was netting 47% of online advertising spending excluding classified ads in Australia, and Facebook was claiming 24%, he said.
Media companies have stopped printing dozens of newspaper mastheads across Australia because the pandemic shutdown has caused advertisers to stop spending.
Mike Pierantozzi joins Movers+Shakers as exec creative director
Creative agency Movers+Shakers has appointed Mike Pierantozzi as executive creative director. In this new role, he will help guide the creative direction of Movers+Shakers’ socially-native campaigns. Pierantozzi will report to co-founder and chief creative officer Geoffrey Goldberg.
With nearly two decades of experience as a copywriter, creative director, and multi-platform storyteller, Pierantozzi brings a wealth of knowledge from his work with major brands including Kraft, Unilever, IBM, and Walmart. He has led the creation of award-winning campaigns for agencies like Red Tettemer, Ogilvy, The Brooklyn Brothers, TAXI, Saatchi & Saatchi, and most recently, Vayner, where he spearheaded culturally iconic work for Planters including “Death of Mr. Peanut.” He led the National Down Syndrome Society and Luvs account, whose “First Kid. Second Kid” campaign was awarded by the Effies, ADC, Clios and LIAs.
Outside of the office, Pierantozzi practices what he teaches brands. He’s gone viral multiple times on his own TikTok account, featuring comedic interactions with his son and a trombone. He’s accumulated 15K followers on TikTok.
“Mike brings a rare and awesome combination of deep social and platform experience, a keen eye for excellent storytelling, and a humble and kind approach to leadership,” said Goldberg. “Mike’s got a knack for turning brand stories into cultural movements, making him the perfect fit for Movers+Shakers. He’s got the kind of bold vision and attention to culture that fits perfectly with our mission to push creative boundaries and drive industry firsts. Plus, as a creator himself he has the innate ability to make people stop, laugh, and share--which is exactly what we’re about.”
“I’ve... Read More