Australia's deal forced big tech companies like Google and Facebook to pay news publishers for their content and now, other countries want their slice too.
👉 Background: You may remember in February last year when almost all Facebook pages for Australian news sites were wiped off the face of the Facebook. That deal was all about a new bargaining code that would force Google and Facebook to pay news publishers for their content in Australia.
👉 What happened: In the end, the deal struck has injected over $200m into Australian journalism per year. And now, other countries want their media industries to get a slice too.
👉 What else: New Zealand is looking to roll out legislation that will be similar to Australia. And the US of A has explored this too. And this is exactly why big tech companies fought so hard in Australia - to avoid this precedent being set.
💡 One landmark deal can create a precedent for many new landmark deals. The main pushback from big tech companies was that this deal in Australia could set a precedent.
💡 Negotiating with other governments and thousands of publishers has the potential to cost big tech billions of dollars per year. But the Australia deal sent a powerful message to other governments that you can negotiate with big tech.
💡So it makes sense why countries like the US, NZ, Canada and others are shaking their tin cans and hoping big tech will tip in.
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