Facebook rejected Australia government call to pay media companies.

Facebook has rejected a call by the Australian government to pay media firms for using their own content, saying there is not any business benefit from getting news on its own stage.

The authorities had arranged the Australian Competition and Consumer Commission (ACCC) to develop a compulsory code of conduct for Facebook and Google which will induce the technology giants to pay media firms for using their content.

In reaction to a concepts paper Facebook stated its earnings would not affect if news weren’t on its support, The Sydney Morning Herald reported on Monday..

“When there weren’t any news content available on Facebook at Australia, we are convinced the impact on Facebook’s network metrics and earnings in Australia wouldn’t be significant because the news articles is highly substitutable and most users don’t come to Facebook with the intent of seeing information,” the company said in an answer.

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The competition watchdog was tasked by developing a”lever-playing field” for its traditional news media that’s now bearing the brunt of Covid-19 pandemic like anyplace in the world.

Facebook reported that the lack of news on Facebook would imply”publishers lose out on the business advantages of reaching a broad and diverse audience, and social value could be diminished because news would be more difficult to access millions of Australians.”

A spokesperson for Facebook Australia and New Zealand had previously said that the company was”disappointed” by the Australian government’s statement.

Facebook has pledged to invest an additional $100 million to support journalists at a time when advertising revenues are declining due to the economic effects of the new coronavirus.

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The social networking giant said “poorly believed regulation” in Australia could force it to rethink its own investments in neighborhood information initiatives along with also an”unworkable” code may force platforms to decrease access to information.

Facebook reported double-digit growth with $674 million last year in Australian advertising revenue.

There is A draft code that was compulsory scheduled to be published for consultation by July end.

The compulsory code of behavior “will cover issues including the sharing of data, position of news content on the web and the sharing of earnings generated from news”.

It’ll be enforced through sanctions and penalties and will include a dispute resolution procedure.

“Australia needs a powerful and sustainable news network ecosystem and the government recognizes the significance of public interest journalism,” Communications Minister Paul Fletcher stated earlier.

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