Australia Reaches an Agreement with Google and Facebook Related to the News Content Revenue

Remember a month or two ago, when news circulated around the fact that Australia has asked Google to pay a part of the revenue it earns through online advertisement, to the particular media organization. Meaning that whatever revenue it earns through its Australian online news and advertisements a part of it will go to the media organization that is associated with the news. According to the Australian government, the Tech Giant earns most of its largest revenue through online advertisements and news and the Australian government thinks it is unfair for Google to keep the entire revenue to itself, and therefore it was forcing Google to pay the media organizations. Google on this, responded that if they were pressurized they will remove the all of the entire Google applications from the Island?

And do you remember that it was a possibility that Aussie will make Facebook do the same with its revenue?

Well, very recently Australian Treasurer Josh Frydenberg had a meeting with the CEO of Facebook, Mark Zuckerberg and the owner of the Alphabet Inc. Google Sundar Pichai on which Frydenberg said that they have made a great progress and the two companies are very close to dealing with the top Australian Medias to pay for the news. This news is huge considering the fact that this standoff is being observed by majority part of the world but at least a middle ground was reached between the Island country and the two companies.

The agreement was enough for Facebook and Google to avoid the most severe parts of the legislation that is to ensure that they are not using their online advertising duopoly to dictate terms in deals with the media agencies.

After the Frydenberg’s remarks on the fact that a middle ground is almost reached a company called Seven West Media, owner of broadcaster 7NEWS and The West Australian newspaper announced on Monday that they have signed a new agreement with Google and its content will now be uploaded on the Google News Showcase Product. According to Frydenberg following this some major Australian news agency like Rupert Murdoch's News Corp and Nine Entertainment will also be joining a similar pattern and even smaller local publishers can make a space for themselves online.

The agreement basically was reached that Google and Facebook will allow Australian media organizations and News companies to put up their content on their social media and pay them a part of the revenue earned.

But, the question lies as to why Australia had to take such measures related to the news content and companies?

Well, since the emergence of search engines, social media and practically every one being a part of the internet, people just read news and information online. Due to this the journalism companies that used to earn a handsome amount of dollars have gone broke and numerous news outlets were forced to shut down in Australia due to this and so many people lost their jobs. Therefore, Australian government took out this alternative measure to prevent other remaining news outlets from going bankrupt.

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