Facebook has played its trump card, in threatening to pull the plug on news in Australia.
The Australian Government wants to introduce a law, which aims to have Facebook and Google financially compensate news publishers for the content and value they provide.
The proposal would allow certain media outlets to bargain either individually or collectively with Facebook and Google — and to enter arbitration if the parties can't reach an agreement within three months, according to regulators. That process would involve an independent arbitrator looking at offers from both sides and settling the matter within 45 business days.
Both tech firms argue that the legislation is unfairly skewed toward publishers, and would force them to pay news companies while the tech firms contend they already do plenty to support them.
Swinburn University media lecturer Dr Belinda Barnett says no other Government in the world has been successful in getting Facebook to pay a fair price for news content.
She says if Australia succeeds, other countries will copy the legislation.
"It would set a global precedent. It would probably affect Facebook's bottom line if they any other countries joined in."Â
Macquarie Media reporter Harry Spicer says the public is not on Facebook's side in this battle.Â
"Australians really don't like it when companies, particularly foreign multinationals, don't pay tax, and Google and Facebook have been drawn into several inquiries in the last few years."Â
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