Google rejects call for huge Australian media payout

Google rejects call for huge Australian media payout

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Sydney: Google has rejected its request. According to the revenue sharing agreement implemented by the government, Google compensates the Australian news media hundreds of millions of dollars every year.

The company’s top executive in Australia said that Google only earns 10 million Australian dollars ($ 6.7 million) from news link advertisements each year, which is a small part of the government’s estimate of the department.

In order to be closely watched on a global scale, Australia will announce plans to force large Internet companies to share advertising revenues from news in their services.

Australian competition regulator ACCC estimates that Google and Facebook ’s annual advertising revenue in Australia totals about A $ 6 billion (US $ 4 billion).

Leading news publishers have asked the two companies to pay at least 10% of the money to local news organizations every year. They said that these news organizations have lost most of their advertising revenue to global technology giants.

Mel Silva, managing director of Google Australia, thinks such figures are very unrealistic.

“We all agree that high-quality news has great social value, but we need to understand the economics as well,” Silva said in a blog post Sunday.

She said Google last year earned just Aus$10 million in revenue from clicks on ads placed next to news-related search queries.

“The bulk of our revenue comes not from news queries, but from queries with commercial intent, as when someone searches for ‘running shoes’ and then clicks on an ad,” she said.

Google ’s position is disgusting for the ACCC ’s desire to negotiate a mandatory “Code of Conduct,” which specifies issues such as revenue sharing, curbing false information, and protecting user privacy.

The regulator suggested last month that if voluntary negotiations on a code of conduct fail, Australian publishers may need to organize a “collective boycott” by Google and Facebook.

Silva said that Google is ready to participate in this process, but he added, “It is important to make decisions based on facts rather than inaccurate numbers and unfounded assertions.”

The ACCC must draft the final regulations before the end of July, and the government said it will implement them as soon as possible.

Google and Facebook have a huge impact on global media companies because they account for the largest share of online advertising spending.

In response to the economic impact of the coronavirus pandemic due to falling incomes, the Australian media has permanently or temporarily closed more than 150 newsrooms, cutting jobs in the industry by more than 20% since 2014.

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