LONDON (ShareCast) - (Sharecast News) - Tech giant Facebook threatened to block Australians from sharing news content over a government plan to charge digital platforms for news content.
The war of words between the Australian government and the social media app intensified on Tuesday, with Treasurer Josh Frydenberg saying the administration would not be bullied "no matter how big the international company is, no matter how powerful they are, no matter how valuable they are".

Facebook, which briefed the US media on its threat, ignoring Australian outlets in the process, said it would stop Australians sharing local and international news on its main app and Instagram if a proposed code was implemented.

"Australia makes laws that advance our national interest and we won't be responding to coercion or heavy-handed tactics, wherever they come from," Frydenberg said.

"We want a sustainable media environment and key to that is to seek payment for original journalistic content."

Australia's Competition and Consumer Commission (CCC) is taking submissions from the industry. Legislation is due to be put before parliament by December.

Facebook Australia managing director Will Easton on Tuesday said the company was prepared to block news to avoid being penalised under what would be the world's first law forcing digital platforms pay for news content.

"Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram. This is not our first choice - it is our last," Easton said.

Australia's media industry has shrunk considerably in the last 25 years, with mass layoffs of journalists the norm, intensified by the loss of advertising revenue during the Covid-19 pandemic. Most of the sector is controlled by Rupert Murdoch's News Corp, which itself shut down a large number of titles or moved them to an online-only presence earlier this year.

CCC chair Rod Sims said Facebook's threat was "ill-timed and misconceived".

"The draft media bargaining code aims to ensure Australian news businesses, including independent, community and regional media, can get a seat at the table for fair negotiations with Facebook and Google," Sims said.

"Facebook already pays some media for news content. The code simply aims to bring fairness and transparency to Facebook and Google's relationships with Australian news media businesses."

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