Facebook restricts news sharing in Australia over payments

The move by Facebook blocks users in Australia from sharing news stories and stops users across the world from sharing articles from Australian publishers

Facebook has started restricting the sharing of news on its service in Australia, defying a proposed law that would require technology companies to pay news publishers when their articles are posted by users.

The ban is the strongest action yet in response to the proposed legislation, which would force Facebook and Google to pay publishers for the revenue their articles generate on the digital platforms. Such payments have been demanded by news outlets, who argue that they should be fairly compensated as Google and Facebook capture much of the advertising market.

The move by Facebook blocks those in Australia from sharing news stories and stops users across the world from sharing articles from Australian publishers. It threatens to cut off one of the most commonly used ways for millions to access information online. Users also reported a number of non-news websites appeared to be inaccessible Thursday. These include government platforms for coronavirus information and weather warnings and satirical pages. Facebook said its actions shouldn’t have affected those sites, but that it would restore pages that may have been impacted inadvertently.

For Facebook and Google, the potential fallout from the spat goes far beyond Australia, as their dominance of global advertising has made them a target for watchdogs across the world. Australia’s proposed law could set a precedent with other countries that have watched the two internet giants impact their news industries. While they oppose the proposed law in Australia, Google and Facebook have struck separate agreements to pay publishers. Earlier Wednesday, Rupert Murdoch’s News Corp., which supports the Australian proposal, said it had reached a deal with Google for the search giant to pay for journalism.

Canberra warned Facebook it was only damaging its own image.

Facebook needs to think very carefully about what this means for its reputation and standing, Communications Minister Paul Fletcher said on an Australian Broadcasting Corporation interview Thursday morning. On quiet, sober reflection, they will start to become quite troubled about what that would mean for how that platform is received.

Josh Frydenberg, Australia’s Treasurer, tweeted that he had a “constructive discussion” with Facebook Chief Executive Officer Mark Zuckerberg on Thursday morning Australia time. He raised a few remaining issues with the Government’s news media bargaining code and we agreed to continue our conversation to try to find a pathway forward, he wrote.

A Facebook representative said Zuckerberg again voiced his disappointment during the conversation over the proposed law, but agreed that the company will continue to engage.

Last summer, Facebook had threatened to block people and publishers in Australia from sharing news on its main platform and Instagram in case the legislation becomes law. Similarly, Google has threatened to shut its search engine in Australia.