Facebook and Google are toppled into law in Australia, forcing them to pay for news published on their network. It is the first law in the world to condemn free news on social media. And the tuffle between the country and the social media giant has managed to gain significant attention over the weeks. But is the law as useful as it seems? The titans from Silicon Valley seem to have taken a blow, for sure. But the impact seems a minor one. The price paid will be small.
Facebook simply blocked the news sharing in Australia or by Australian publishers. Even links shared by others aren’t allowed. This, in turn, drives down the traffic that entered the websites of these news publishers. It also manages to pressure the government into softening these laws. Lawmakers did fall for it, almost. Who won this match remains a long-term question to be answered too early. But for now, Facebook has walked out on this as a clear, satisfied winner. That is because the ground beneath the social media giant isn’t shaken yet.
Did Facebook Take A Hit?
Facebook did take a small hit. The question of whether the after-effects remain is still a question. Google and the world’s biggest social network managed to avoid how much they would have to pay to these publishers. Instead of that, they have the freedom to choose the kind of commercial deals they would like to pursue. And arbitration facing will only be their last resort. Of course, the two tech firms have been brought down. But they can use simple techniques like paying the publishers in Australia to draw traffic in its tab.
But what about smaller firms? VP of global affairs at Facebook announced a 1 billion dollar deal for the next 3 years. This is for the news industry.
But FB’s stock fell by 3.7% on Thursday in NY. Their price while writing was 254.69 dollars.