Facebook banned local and international articles from its platform on Thursday. By Friday,it was trying to strike commercial deals.Credit:Sydney Morning Herald
Facebook founder Mark Zuckerberg was directly involved in carrying out the news blocking exercise in a fierce stance against a proposed code that could become law by the end of the week,which would force it into commercial negotiations with news outlets or face large fines.
Multiple industry sources familiar with Facebook’s talks,who spoke on the condition of anonymity,said just a day after the unprecedented move Facebook contacted News Corp and Nine (owner of this masthead) to re-engage about commercial deals. Both parties were in talks with Facebook almost two weeks ago but the conversations stopped before Facebook made an eleventh-hour decision to pull all Australian news content.
Since Facebook’s last attempt to engage on commercial deals,Google has agreed to multimillion-dollar deals with News Corp,Nine,Seven West Media andGuardian Australia and smaller outlets such as youth website Junkee. The ABC remains in talks with Google and Communications Minister Paul Fletcher said on Thursday that any proceeds the broadcaster receives will not “lead to a reduction in the funding” that the government provides.
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It is unlikely a deal with Nine or News Corp will be struck with Facebook because it still has not removed a “poison pill” clause allowing it to terminate any deals it struck with publishers upon the passage of the new laws. The sources said the offers put back on the table had no significant changes to the ones previously rejected for the termination provisions.
Google had initially inserted a similar clause into its agreements but dropped it after amendments were made to the proposed law. Facebook declined to comment on the renewed talks. News Corp and Nine were approached for comment.
Treasurer Josh Frydenberg toldThe Sun-Herald andThe Sunday Agehehad held “constructive” discussions with Mr Zuckerberg over the weekend but he has no intention of walking away from its media laws that would compel tech platforms such as Google and Facebook to pay media companies for using their content.