SYDNEY: Knocking Google and Facebook over their approach to the new News Media Bargaining Code in Australia, Microsoft President Brad Smith has said that the United States and its tech sector should not object to a creative proposal that strengthens democracy by requiring tech companies to support a free press.
The US should copy the new media code instead, Smith said, stressing that he and Microsoft CEO Satya Nadella reached out to Australian Prime Minister Scott Morrison and explained that "even if Google wanted to leave Australia, we would stay".
According to Google, the code is "unfair", saying also it puts the "way Aussies' search at risk". Google believes it contains an unfair arbitration process that "ignores the real-world value Google provides to news publishers and opens up to enormous and unreasonable demands" and similarly Facebook takes issue with the code, having threatened to pull news completely from its Australian platform.
Late last month, Google threatened to pull its Search engine from Australia if the proposed media bargaining code, that directs Google and other tech giants to pay news publishers for using their content, goes into effect.
Facebook similarly said that if the proposal is adopted, it would stop Australian users from sharing news on its Facebook and Instagram platforms. Microsoft instead committed that its Bing search service would remain in Australia and that it is prepared to share revenue with news organisations under the rules that Google and Facebook are rejecting.
"Our endorsement of Australia's approach has had an immediate impact. Within 24 hours, Google was on the phone with the Prime Minister, saying they didn't really want to leave the country after all. And the link on Google's search page with its threat to leave? It disappeared overnight," Smith informed. Apparently, competition does make a difference," he said in a blog post on Thursday.
Microsoft's Bing search service has less than 5 percent market share in Australia, substantially smaller than other countries like the US, Canada and the UK.
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