Story in Brief:
The Australian Government has proposed a new law that would make Big Tech firms pay for news content in Australia. Google and Facebook have taken dramatically different approaches to this.
Google initially said the new law could force the removal of its search engine from the Australian market. Now, the company has announced a three-year global partnership agreement with News Corp, which owns publications including The Times and The Wall Street Journal.
Facebook, on the other hand, has banned the sharing of Australian news content on the platform globally.
Consider the impact of Facebook’s ban on Australian publishers. As many of Facebook’s users solely use the platform as a news source, this could dent the company’s credibility and profitability.
Since Google has decided to comply with the law by making significant payments to News Corp, this will impact its profitability. Follow this story to see how other social media firms respond to this challenge.