New Murdoch Tax will lead to Google and Facebook controlling Australian media

Federal Treasurer Josh Frydenberg has been sucker-punched by Google and Facebook while negotiating the new media bargaining code which could be best described as the Murdoch Tax as it is Rupert who has pushed hardest for it and the government (ACCC) basically went with Murdoch’s proposal. For whatever reason Josh Frydenberg has watered down the Murdoch/ACCC draft plan and given major concessions to Google and Facebook.

The original plan was for Google and Facebook and others to pay Australian media companies for news content. But Josh Frydenberg buckled:

The SMH reported:

In a major win for Google and Facebook, the code will provide for a two-way value exchange in the arbitration process, allowing the tech giants to argue they provide news companies with millions of dollars in referral traffic each year.

Mr Frydenberg, who will table legislation to give effect to the code on Wednesday, said it would ensure compensation could go only “one way” – in the direction of media businesses – but indicated the payment could be diluted as a result of the value exchange.

In further concessions to Google and Facebook, YouTube and Instagram will not be included in the code (Click here to read more) (Google own YouTube and Facebook own Instagram)

But one of the major beneficiaries of the new media bargaining code is meant to be Nine Entertainment, owner of Channel 9, The Age, The SMH etc, but they have even called it out for being the dud agreement that it is.

Nine Entertainment

It was reported:

Nine Entertainment Co, owner of this masthead, criticised the two-way value exchange model, saying it “seriously undermines” the policy intent of the legislation to address the bargaining power imbalance between news businesses and the tech giants.

“The continued concessions to the digital platforms only entrenches both their monopoly power and the significantly unfair imbalance in regulation,” a Nine spokesperson said in a statement. “These companies pay little or no tax, contribute little and often negatively to our culture, and employ no creative teams.” (Click here to read more)

I posted the below video yesterday (8/12/20) on Twitter, Facebook and Youtube pointing out that Google and Facebook will in effect control Australian media if all the Australian media are on the financial drip of Google and Facebook.

In the above video, I mentioned that I have been censored by Facebook, Twitter and Google. I published an article about it on the 6/12/20 here: Google, Facebook and Twitter censor journalist Shane Dowling’s website Kangaroo Court of Australia and new book Australia’s Paedophile Protection Racket

A prime example of how the media protect those who pay them is the recent story on Media Watch who showed how Harvey Norman was protected by the media when they were given a shonky award by Choice for having an instore credit card charging 22% interest. The media concealed it because Harvey Norman is Australia’s biggest spender on advertising at $165 million a year.

The Media Watch story (16/11/20) on Harvey Norman winning the Shonky Award is below:

If Australian media will protect Harvey Norman because they pay the media companies so much money would they also protect Google and Facebook? How could Australian media protect Google and/or Facebook? By not reporting on them abusing their power for the rich and powerful such as Google shadow banning this website by pushing it was down the order in search results for many keywords.

What is News Corps game plan?

Initial reports suggest that News Corp seem to have accepted the deal as a good deal.

The SMH reported:

News Corp Australia executive chairman Michael Miller said the code was a “significant step forward” in a decade-long campaign to rebalance the relationship between digital platforms and media companies.

“As a result of their lobbying, the tech platforms have won concessions, and there should be nothing stopping them now from reaching fair commercial agreements. Ultimately, this code will benefit Australian consumers by helping sustain Australian news from Australian media companies,” Mr Miller said. (Click here to read more)

News Corp has admitted they have been lobbying the government to get money from Google and Facebook and that is why myself and others have named it the Murdoch tax which I wrote about on the 13/9/20 in an article titled “Rupert Murdoch’s attempt to shakedown Facebook and Google is underwritten by Scott Morrison and the Liberal Party“.

So if News Corp has been lobbying for so long and so strongly why have they rolled over and accepted such a dud deal?

One answer might be there are opinions in the media that Murdoch is planning on selling the Australian paper assets in News Corp and maybe he just wants the government to pass the legislation so he can tell any prospective buyer they will get money from Google and Facebook to help boost the sale price. Or maybe Murdoch has done a backroom deal with Google and Facebook already.

The deal potentially gives Google and Facebook huge influence over Australian media. More power than Rupert Murdoch ever had and that can’t be good for Australia.

I’m being a bit harsh, Google and Facebook might throw Australian media companies a few breadcrumbs hoping it keeps them happy but that’s about it because if they give them a large amount they will end up having to do the same in other countries around the world and that will cost Google and Facebook tens of billions and they won’t want to do that.

Australian media has a lot of problems just trying to survive the same as media around the world. The large media companies are contracting at a rapid pace and small independent journalists like myself don’t even make a wage and that’s why I am pushing my new book so hard. 

What the answer is to Australia’s media problems are I don’t know, but it certainly is not having Australian media on the financial drip of Google and Facebook.

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3 replies »

  1. both Moronson and Frydenberg needs to be sucker punched repeatedly ,both as useless as teat on a bull,the $444 million pair of scaming conmen

  2. Independent websites should offer to google and facebook to provide their news content free of charge so they don’t need to pay anything. That way the fake news sites ie MSM will vanish, and real news will replace it!

    Somehow though I doubt that fake google and fake facebook would ever take up the offer. After all, I suspect this whole scheme is a covert way to save the failing MSM in this country – people have awakened and are abandoning them. IMO all the bickering is just for show.

  3. Are those people indicated and head honchos of Farcebook and Google completely wooden-headed to the point of believing that a great amount of human beings do not desperately need them and their spy companies to survive.
    Point, click, type, push buttons to exist has fooled many people, but not yet enough Earthlings to be conned.

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