Australia Teaching the World how to Fight Facebook

Australia Teaching the World how to Fight Facebook

Australia’s health department will no longer advertise on Facebook, it has announced, the latest escalation of the government’s feud with the social media giant, which continues to block news content from its platform in the country.

The freeze comes as Australia begins to promote its newly launched Covid-19 vaccination rollout with a nearly US$20 million public information blitz aimed at boosting uptake and countering a flood of anti-vaccine conspiracy theories.

Health Minister Greg Hunt said on Sunday his department would still pay to promote the vaccine campaign, just not on Facebook.

“All of our funds will be used,” said Hunt. “We will continue to post on that particular channel, we just won’t be boosting.”

Australia’s government is locked in an acrimonious dispute with Facebook over a law that would force digital platforms to compensate media outlets for online content.

Facebook strongly objects to the proposed legislation, and in retaliation on Thursday blocked virtually all Australian news on its platform.

Posts by several emergency services were briefly also caught in the blackout, sparking outcry.

The law is expected to be finalised in parliament this week and Facebook is believed to still be in talks with Australian media companies and the government to find a last-minute solution.

Facebook’s dramatic response contrasted with that of Google, which has inked deals with several media firms, including Rupert Murdoch’s News Corp and the Guardian.

While Australians remained unable to share news articles or view media groups’ Facebook pages, the country began its vaccination drive on Sunday.

Jane Malysiak, an aged care resident and WWII survivor in her 80s, was first in line.

The prime minister and other top officials were also among a small group receiving the first jabs, before the programme expands this week to cover frontline health care workers and other officials.

Australia’s push to regulate tech giants has become a power struggle between two of the world’s most powerful men, with Rupert Murdoch and Mark Zuckerberg locked in a generational battle for media dominance.

Efforts in Australia to make Google and Facebook pay for news has garnered worldwide attention, creating what some call a defining moment for the web and for journalism, and even a litmus test for democracy.

But beyond the high-sounding rhetoric lies a more base struggle, with the barons of traditional media fighting back against their digital heirs.

Sydney tech billionaire Mike Cannon-Brookes went as far as calling the Australian push to force payments for content a “shakedown”.

The landmark legislation may carry the seal of government, but media and political insiders see the fingerprints of Rupert Murdoch’s News Corp all over it.

“This has been a passionate cause for our company for well over a decade,” said News Corp chief executive Robert Thomson, hailing his boss’ “fervent, unstinting support” for the cause.

“For many years, we were accused of tilting at tech windmills, but what was a solitary campaign, a quixotic quest, has become a movement, and both journalism and society will be enhanced.”

For decades, the Melbourne-born billionaire behind Fox News, The Sun and Sky News Australia has bestraddled politics in the United States, Britain and Down Under.

Today, he controls roughly two-thirds of daily newspaper circulation in Australia’s major cities, with complete monopolies in Brisbane, Adelaide, Hobart and Darwin.

That has prompted critics to paint the 89-year-old in almost cartoonish terms — as an all-powerful political puppetmaster.

While he still wields political power, the rise of Facebook and Google has seriously challenged Murdoch’s preeminence — gouging ad revenues that kept many of his publications in the black.

– ‘Frightened of Murdoch’ –

At the turn of the millennium, newspapers had 96 percent of Australia’s classified revenues. Now, that is down to around 12 percent.

“Let’s not kid around, this was very deliberately designed to put money in the pockets of a very few specific companies — News Corp and others,” Lucie Krahulcova of advocacy group Digital Rights Watch told AFP.

An initial draft of the law even cut out public broadcaster ABC — which Murdoch’s outlets and Australia’s conservative government have long attacked — from receiving Google and Facebook payments.

Former prime minister Kevin Rudd, an outspoken Murdoch critic, told lawmakers in Canberra on Friday that the proposed laws solved the digital dominance problem “by enhancing the power of the existing monopoly -‒ that’s Murdoch”.

“Everyone is frightened of Murdoch,” he maintained.

Everyone, it seems, except Facebook CEO Mark Zuckerberg, who made a worldwide splash last week by refusing demands to pay Murdoch’s News Corp and other Australian media.

Rather than follow Google and reach agreements to pay for content, Zuckerberg went nuclear, removing news from Australia on the platform and sparking a global backlash.

– Enormous political power –

The two men were born more than three decades part and come from staggeringly different eras, but both wield enormous political power.

Where Murdoch could hobble governments or torpedo campaigns with a rapier front-page splash, Zuckerberg’s platform can change the tenor of a US election campaign.

Like Murdoch, Zuckerberg has come under fierce scrutiny for his influence over society.

It is also not the first time they have tussled.

Murdoch’s bid for social media dominance failed spectacularly when MySpace was left in the dust of Zuckerberg’s rapidly growing Facebook.

According to reports by tech magazine and website Wired, the pair had a testy exchange in Sun Valley, Idaho in 2016, with Zuckerberg allegedly warned to offer publishers a better deal or expect New Corp to lobby regulators around the world.

Those lobbying efforts are now bearing fruit in Australia, with Google agreeing to pay the company for news in a three-year deal.

The amounts were not disclosed, but similar Google deals with other Australian media groups were said to be worth around US$23 million a year.

Supporters have cheered that as a victory for journalism — a struggling industry long in decline — although questions remain about whether the money will be ploughed back into reporting.

With legislation in the works in Canada, Europe and perhaps even the United States, Murdoch’s “quixotic quest” against the tech giants is unlikely to stop in Australia.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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