'It Could Backfire': Ramifications of Facebook's News Blackout and Google's Dealmaking

The conflict over news in Australia is a blow for media companies

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Moves from Google and Facebook this week have publishers fretting as regulators globally keep a close eye on Australia’s pending media law.

Google and Facebook took opposite approaches to the proposed News Media Bargaining Code, which requires platforms to negotiate payment with publishers for displaying snippets of their content.

Google’s decision to strike multimillion-dollar deals with Australia’s leading news media companies for its News Showcase leaves little oxygen for smaller publishers. These larger players will also sit out the legal processes for negotiating royalties, sources tell Adweek.

Meanwhile, Facebook’s decision to block news pages and content in the country leaves a vacuum for misinformation to flourish. 

“It

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