Rupert Murdoch is on the move and is trying to change the international news media landscape. To this end, he is competing against two digital giants, Facebook and Google

Google has signed a deal with News Corp that it will pay Rupert Murdoch’s media conglomerate to host its digital content for the next three years

The deal comes as the Australian government prepares to pass laws requiring Google and Facebook, which control 81% of Australia’s online advertising revenue, to pay media publishers for their content

While Google continues to negotiate with publishers, Facebook has decided to play hardball. Mark Zuckerberg’s company deleted national and international media pages from its website in Australia, essentially “alienating” an entire country

The move has been sharply criticized by Australian politicians and publishers, who are now struggling to distribute their content through new channels

“At one point we were told that the Facebook and Google algorithms wanted videos, so every story had a video,” said Marcus Strom, journalist and president of Australia’s media union, Entertainment & Arts Alliance, to Newsweek “Then turned one day they just went around and said they didn’t want any more video “

According to Strom, newsrooms had to lay off some of their video teams and reshuffle their resources and strategies to accommodate the change.The update affected all newsrooms, regardless of size, including Murdoch’s News Corp.

For the past decade, Murdoch has been an outspoken critic of “Big Tech’s abuse of the market” “With one in five newspapers out of print in the past decade and a half, Murdoch has felt the pain of the industry as the advertising revenue his company continues to decline every year

Australia’s plan to cut off some of the power of the two digital giants who control the lion’s share of national advertising provided Murdoch with an opportunity to do international settlement

Both Canada and the European Union are in the process of drafting similar legislation Canada could follow Australia and require the two tech giants to pay for content or, as Canada’s Minister of Cultural Heritage Steven Guilbeault, whose office is drafting the legislation, said they could follow the French model which focuses on license agreements

The European Union is planning to introduce the Digital Markets Act, which aims to establish companies like Facebook and Google as digital gatekeepers They must obey regulations to curb their power and increase competition in the market

“Google and Facebook have the ability to control prices, offer lower prices and crowd out their competition,” Jennifer Grygiel, social media and corporate responsibility expert at Syracuse University, told Newsweek “What happens in Australia has to.” really to be seen as global politics “

Facebook’s ban on Australian publishers not only censors Facebook messages in this country, but also prevents Australian messages from reaching other nations, which is why Grygiel expects Australian law to enforce international action to limit the influence of big tech on combat digital media

The importance of the moment is not lost for Murdoch, who has campaigned for Australian law for years. News Corp participated in the EU public consultation forum on the Digital Markets Act, allowing companies like Microsoft and Discovery to take the lead in Aber Murdochs Company met with US. Justice Department officials discuss the DOJ’s investigation into possible antitrust violations by Google

As the House Judicial Antitrust Subcommittee prepares for a series of meetings to modernize antitrust laws for the digital age, Murdoch’s company can feel confident that it has made donations to 11 of the 23 committee members and named the Judiciary Committee as its third highest recipient of campaign funds

“Rupert is one of the most effective government rent hunters in the world who is a master at pressuring Western governments to do what he wants,” says Stephen Mayne, an Australian journalist who has covered Murdoch for 22 years He had previously gleaned from two of his articles, Newsweek said

While Mayne says Murdoch’s direct influence is mostly in countries where News Corp branches influence conservative politics, such as the US., UKand Australia, he says, Murdoch’s relationship with conservative leaders allows him to influence international politics through lobbying these governments

Whether through Murdoch’s intervention or not, this phenomenon seems to play a role Australian Prime Minister Scott Morrison has discussed a partnership with Conservative Indian Prime Minister Narendra Modi to curb the dominance of Google and Facebook

Morrison also met to discuss the matter with British, Canadian and French leaders. Public opinion in these nations seems to indicate that Murdoch might well grant his wish

Guilbeault pledged Canada will put laws requiring Facebook and Google to pay news publishers before the beginning of next year David Cicilline (D-RI), chairman of the House’s Antitrust Subcommittee, has publicly committed to strengthening antitrust laws to address the “harmful business practices of Facebook (and) Google”

As these laws are proposed, however, enforcement remains an important issue. An EU official told Newsweek that the focus of the digital markets law resolution will be on identifying potential violations of the new law and preparing responses who address the issues proactively rather than retrospectively

“Traditional market means rules would not be helpful,” said the official. “A fine does not change anything”

With market caps of $ 760 billion for Facebook and $ 1.4 trillion for Google, the two companies have a combined market value that exceeds the GDP of all but six countries in the world – put that value at $ 8 billion by News Corp and the next largest news media company, The New York Times Company, for $ 7 billion, and it appears that traditional media conglomerates are facing an uphill battle in competition for international influence and dominance, however, if anyone is prepared for the challenge, says Mayne Rupert Murdoch

“He’s adamant about anyone who pulls advertisers or viewers out of his empire, be it through government channels like ABC and BBC or the big tech companies,” Mayne said. “He’ll prevail to (UK and Australian ) Get government to take punitive action against big tech “

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Rupert Murdoch

World news – FI – Rupert Murdoch takes on Facebook and Google in Australia, others want to follow suit

Source: https://www.newsweek.com/rupert-murdoch-takes-facebook-google-australia-others-look-follow-1571150