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Facebook and Google want to protect data secrecy and use of news media but the Government has other ideas
https://www.abc.net.au/news/2020-09-02/google-facebook-protect-business-model-data-secrecy-share-news/12620184
This is what Facebook and Google are really fighting for.
With the rest of the world watching, Google and Facebook do not want a precedent set in Australia over access to the data they gather on users. And it's too late for the Government to back down now, writes David Speers.
A couple of weeks ago, Google started bombarding users with a pop-up yellow alert every time they clicked on the search engine.
It wasn't a warning about offensive content, cyber security or online privacy. Rather, it was about rallying its millions of users to help protect the company's business model and data secrecy.
The Australian Government is boldly going where no other country has gone in taking on tech giants Google and Facebook. It has proposed a new "Mandatory News Media Bargaining Code" which would require these two tech giants to do two things.
One, they would have to pay Australian media companies a fair amount for the use of their journalism.
Two, they would have to hand over a lot more information about the data they collect on their prized algorithms.
Around the same time as these pop-up warnings began to appear, Google quietly reached out to Treasurer Josh Frydenberg. Government sources say the tech giant signalled a preparedness to pay up. Exactly how much it was willing to offer media companies is unclear, but somewhere in the "tens of millions of dollars per year".
Money, it seems, wasn't the main concern.
The red line for Google was apparently the data sharing.
Under the mandatory code proposed by the competition regulator, Google and Facebook would be required to provide media companies with "clear information about the data they collect through users' interactions with news on digital platforms; for example how long users spend on an article, how many articles they consume in a certain period, and other information about user engagement with news content across digital platform services".
They would also have to give "28 days' notice of algorithm changes likely to materially affect referral traffic to news, algorithm changes designed to affect ranking of news behind paywalls, and substantial changes to the display and presentation of news, and advertising directly associated with news".
This information about which news stories and ads appear in your Facebook feed or Google search goes to the heart of the business models of these technology companies.
It's the "special sauce" they will guard jealously to the end. This is what the fight is really about. With the rest of the world watching, Google and Facebook do not want a precedent set here in Australia.
The nuclear option
Facebook has now upped the ante, joining the Google approach of trying to harness its millions of users to pressure the Government. It's threatening to ban Australian users from accessing news content from its site completely to avoid having to comply with this new law.
This is the nuclear option.
Stopping users sharing legitimate news content may not necessarily be easy, but it can be done.