We take a look at why the Australian government thinks there is a strong case for making Big Tech pay for news
News is a costly business. When news shows up for free on Google, or is shared on Facebook, it drives up traffic for them, making them richer with ad dollars. But news organisations themselves get very marginal returns on their investment. That’s why Australia has decided to charge Big Tech for news shown on their platforms. While both sides argue the issue has a deep bearing on democracies and an open internet.
Big Tech and social media argue that right from their emergence they have fostered the creation of a more interconnected and open world. But media industry watchers point out the rise of social media has accompanied an inexorable decline in the fortunes of the media industry, overall, and of print media, in particular.
Facebook has now cut a deal with Australian government and will restore news pages in the coming days after restricting them (Photo: Reuters)
Big Tech and social media argue that right from their emergence they have fostered the creation of a more interconnected and open world. But media industry watchers point out the rise of social media has accompanied an inexorable decline in the fortunes of the media industry, overall, and of print media, in particular.