CANBERRA — Facebook said on Tuesday it will restore Australian news pages after negotiating changes with the government to a proposed law that forces tech giants to pay for media content displayed on their platforms.
Australia and the social media group have been locked in a standoff for more than a week after the government introduced legislation that challenged Facebook and Alphabet Inc’s Google’s dominance in the news content market.
Facebook last week blocked Australian users from sharing and viewing news content on its popular social media platform, drawing criticism from publishers and the government.
But after a series of talks between Frydenberg and Facebook CEO Mark Zuckerberg, a concession deal has been struck.
The issue has been widely watched internationally as other countries including Canada and Britain consider similar legislation.
“Facebook has refriended Australia, and Australian news will be restored to the Facebook platform,” Treasurer Josh Frydenberg told reporters in Canberra on Tuesday.
Frydenberg said Australia had been a “proxy battle for the world” as other jurisdictions engage with tech companies over a range of issues around news and content.
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While Big Tech and media outlets have battled over the right to news content in other jurisdictions, Australia’s proposed laws are the most expansive and are seen as a possible template for other nations.
“Facebook and Google have not hidden the fact that they know that the eyes of the world are on Australia, and that’s why they have sought I think to get a code here that is workable,” Frydenberg said.
Australia will offer four amendments, which include a change to the mandatory arbitration mechanism used when the tech giants cannot reach a deal with publishers over fair payment for displaying news content.
“Going forward, the government has clarified we will retain the ability to decide if news appears on Facebook so that we won’t automatically be subject to a forced negotiation,” Facebook Vice President of Global News Partnerships Campbell Brown said in a statement online.
She said the company would continue to invest in news globally but also “resist efforts by media conglomerates to advance regulatory frameworks that do not take account of the true value exchange between publishers and platforms like Facebook.”
COMPROMISES
The amendments include an additional two-month mediation period before the government-appointed arbitrator intervenes, giving the parties more time to reach a private deal.
It also inserts a rule that an internet company’s existing media deals be taken into account before the rules take effect, a measure that Frydenberg said would encourage internet companies to strike deals with smaller outlets.
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Australia had until Monday said it would make no further changes to the legislation.
The so-called Media Bargaining Code has been designed by the government and competition regulator to address a power imbalance between the social media giants and publishers when negotiating payment for news content used on the tech firms’ sites.
Media companies have argued that they should be compensated for the links that drive audiences, and advertising dollars, to the internet companies’ platforms.
A spokesman for Australian publisher and broadcaster Nine Entertainment Co Ltd welcomed the government’s compromise, which it said moved “Facebook back into the negotiations with Australian media organizations.”
A representative of News Corp, which has a major presence in Australia’s news industry and last week announced a global licensing deal with Google, was not immediately available for comment.
The proposed code will apply to Facebook and Google, although the competition regulator, which advised government on the legislation, has said it’s likely other tech firms will be added.
Frydenberg said Google had welcomed the changes. A Google spokesman declined to comment on Reuters’ queries.
Australian Competition and Consumer Commission chair Rod Sims, the main architect of the law, declined to comment.
The government will introduce the amendments to Australia’s parliament on Tuesday, Frydenberg said. The country’s two houses of parliament will need to approve the amended proposal before it becomes law.
Frydenberg said he expected Australian news content to be restored to Facebook in the “coming days.”
(Reporting by Colin Packham and Byron Kaye; additional reporting by Renju Jose; Writing by Jonathan Barrett; Editing by Sam Holmes)
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B.C. Premier David Eby.Photo by DARRYL DYCK /THE CANADIAN PRESS
VICTORIA — Premier David Eby has pushed the pause button on a contentious bill that would have allowed the province to recover health care and other costs attributed to the marketing of risky products in B.C.
Two dozen business and industry groups had called for the New Democrats to put the bill on hold, claiming it was so broadly drafted that it could be used to go after producers, distributors and retailers of every kind.
Eby claimed the pause had nothing to do with those protests. Rather, he said, it was the willingness of giant social media companies to join with the government to immediately address online safety in B.C.
“It is safe to say that we got the attention of these major multinational companies,” the premier told reporters on Tuesday, citing the deal with Meta, Snapchat, TikTok and X, the major players in the field.
“They understand our concern and the urgency with which we’re approaching this issue. They also understand the bill is still there.”
The New Democrats maintain that the legislation was never intended to capture the many B.C. companies and associations that complained about it.
Rather it was targeted at Facebook owner Meta and other social media companies and the online harm done to young people. A prime example was the suicide of a Prince George youth who was trapped by an online predator.
Still, there was nothing in the wording of Bill 12, the Public Health Accountability and Cost Recovery Act, to indicate its application would be confined to social media companies or their impact on young people.
Eby even admitted that the law could also be used to recover costs associated with vaping products and energy drinks.
Some critics wondered if the bill’s broad-based concept of harms and risks could be used to prosecute the liquor board or the dispensers of safer-supply drugs, products with proven harms greater than any sugary drink.
Perhaps thinking along those lines, the government specifically exempted itself from prosecution under the Act.
This week’s announcement came as a surprise. As recently as Monday, Attorney General Niki Sharma told reporters the government had no intention of putting the bill on hold.
Tuesday, she justified her evasion by saying the talks with the social media companies were intense and confidential.
She said the pause was conditional on Meta and the other companies delivering a quick response to government concerns.
“British Columbians expect us to take action on online safety,” she told reporters. “What I’ll be looking for at this table is quick and immediate action to get to that better, safety online.”
A prime goal is addressing online harassment and “the online mental health and anxiety that’s rising in young people,” she said
“I’m going to be watching along with the premier as to whether or not we do get real action on changes for young people right away,” said the attorney general.
“I want to sit down with these companies look at them face to face and see what they can do immediately to improve the outcomes for British Columbians.”
Meta has already committed to rectifying Eby’s concern that it should relay urgent news about wildfires, flood and other disasters in B.C. Last year, those were blocked, collateral damage in the company’s hardball dispute with the federal government over linking to news stories from Canadian media companies.
Eby says he was very skeptical about the initial contact from the companies. Now he sees Meta’s willingness to deliver emergency information as a “major step” and he’s prepared to give talks the benefit of the doubt.
Not long ago he was scoring political points off the social media companies in the harshest terms.
“The billionaires who run them resist accountability, resist any suggestion that they have responsibility for the harms that they are causing,” said the premier on March 14, the day Bill 12 was introduced.
“The message to these big, faceless companies is, you will be held accountable in B.C. for the harm that you cause to people.”
Given those characterizations, perhaps the big, faceless billionaires will simply direct their negotiating team to play for time until the legislation adjourns as scheduled on May 16.
“The legislation is not being pulled and we’re not backtracking,” said Sharma. “We can always come back and bring legislation back.”
The government could schedule a quick makeup session of the legislature in late May or June or even in early September, before the house is dissolved for the four-week campaign leading up to the scheduled election day, Oct. 19.
More likely, if the New Democrats feel doublecrossed, they could go back to war with the faceless billionaires with a view to re-enacting Bill 12 after a hoped-for election victory.
Even if the New Democrats get some satisfaction from the social media companies in the short term, they have also framed Bill 12 as a way to force the marketers of risky products to help cover the cost of health care and other services.
They probably mean it when they say Bill 12 is only paused, not permanently consigned to the trash heap.
B.C.’s attorney general says the province can bring the online harms legislation back but it will first seek remedies through negotiations with social media companies.Michael M. Santiago/Getty Images
The British Columbia government has agreed to shelve proposed legislation that would have allowed it to sue social-media companies for online harms after Meta, TikTok and others agreed to work with the province to put voluntary protections in place.
The social-media companies have not agreed to anything other than talks, but Attorney-General Niki Sharma credited the proposed legislation with bringing the key players to the province’s door.
“Our bill was able to get the attention of some pretty big companies out there and get them to the table with us, and I’m pleased with that,” she told reporters Tuesday.
The government can bring the bill back, she said, but it will first seek remedies through negotiations. “We could be locked in litigation for years, but at this stage it’s my obligation to see if we can come to some kind of improvements,” Ms. Sharma said.
Premier David Eby said the agreement was hammered out after Meta reached out to the province. A spokesperson for the company could not immediately be reached for comment.
Danielle Morgan, a spokesperson for TikTok, said her company is committed to developing new safeguards. “We look forward to joining Premier Eby and working with industry counterparts … to discuss best practices towards our shared goal of keeping young people safe online.”
The province introduced Bill 12, the Public Health Accountability and Cost Recovery Act, in March with the promise that it would allow government to recover costs associated with the promotion, marketing and distribution of products that are harmful to adults and children in the province.
But while the bill received the support of researchers who study the impact of some platforms on mental well-being, particularly in teenagers, the broad scope of the legislation alarmed business leaders who warned it could be used to target companies well beyond social-media platforms.
“The net spread so widely, it could capture just about anything you could imagine,” said Bridgitte Anderson, president and chief executive officer of the Greater Vancouver Board of Trade. She said the provincial government heard the concerns of many different sectors when it withdrew the bill from this spring’s legislative agenda. “We’re delighted the government is going to hit pause on this.”
The B.C. bill was tabled just weeks after Ottawa introduced Bill C-63 to create a new Online Harms Act, which is meant to hold tech platforms accountable for the content they host.
Kaitlynn Mendes, a professor of sociology at Ontario’s Western University, is an expert on the impact of online harms on youth, including sexual exploitation, self-harm, anxiety and anti-social behaviour.
She said the B.C. government is being optimistic in thinking it can bring social-media giants into line without a legal cudgel.
“I think that is wishful thinking. Industries don’t want to be governed. They’d rather have codes of conduct but that relies on them being good faith actors – ultimately, they are going to act in their best interests. I’d be skeptical that it’s going to change anything,” she said in an interview.
“I really hope the Canadian government doesn’t try to rely on deals. We need to have structures in place to hold these companies accountable.”
Mr. Eby issued a joint statement on Tuesday with representatives from Meta, TikTok, Snap and X, saying they have reached an agreement to work to help young people stay safe online through the new BC Online Safety Action Table.
“Digital platforms are powerful tools, which can connect family members and loved ones and are places where we find like-minded people. Places where community is built and sustained. But the internet is also a place where criminals and scammers are constantly seeking new ways to find and extort potential victims,” the joint statement said.
Mr. Eby championed the pursuit of tackling social-media harms after meeting with the grieving parents of Carson Cleland, a 12-year-old who killed himself last October after being sexually victimized online.
“Carson was deceived by an online predator, tormented and sexually extorted. He took his own life before his parents were aware of what was happening,” the statement continued. “Premier Eby made a promise to Carson’s parents that his government would find ways to make sure Carson left behind a legacy that will help protect other young people.”
The province will place Bill 12 on hold while the parties meet to discuss how to protect youth from online harms before they happen.
Ms. Sharma said there are three areas B.C. wants addressed: sexual exploitation of youth online; rising mental-health issues and anxiety among young people; and online harassment and bullying.
B.C.’s bill was modelled on its efforts to seek damages from major tobacco companies over tobacco-related health costs. The province was the first Canadian jurisdiction to launch such a lawsuit, in 1998, but that case is not yet resolved – underscoring the lengthy process involved in reaching a resolution.
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