Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, U.S., October 23, 2019.REUTERS/Erin Scott
- Facebook has blocked Australian users from sharing news articles on its platform.
- The move comes after months of wrangling with Australian officials.
- But the tech giant also faces pressure from a growing number of governments on how it handles news.
Facebook blocked Australian users from sharing and viewing news articles on their feeds on Wednesday, following months of back-and-forth with local officials.
The dramatic step follows a debate with lawmakers over how to rebalance the relationship between tech platforms and legacy media outlets.
The country's proposed "news and media bargaining code" would force Facebook and Google to pay news publishers to display stories in their search results and news feeds. Should the code pass in its current form, it would impose forced bargaining on tech firms, with Facebook and Google arguing that this is unworkable.
Google initially threatened to remove its search engine from Australia altogether, saying the code would disrupt its business model. But it has since taken a softer approach, enticing news publishers -onto its Showcase platform with multi-million dollar deals. Showcase would enable users to access previously paywalled content for free. It has signed deals with some of its fiercest media critics, including media mogul Rupert Murdoch's News Corp.
Facebook, however, has taken the nuclear option: blocking Australians from sharing news content. That crackdown has inadvertently and temporarily included a host of public service institutions' pages, including fire departments and food banks.
This is the first time Facebook has taken such drastic action, but it might not be the last, because multiple regulatory agencies and governments are considering new rules around news payments.
These rules are in varying stages of progress. Insider broke down 7 of the territories around the world that are on a collision course with Facebook.