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Tag Archives: google

Inquiry’s bumpy ride awaits, after tech giants’ “blackmail” tactics

As the Senate inquiry into the Digital Media Code began on Friday, Greens senator Sarah Hanson-Young has expressed her displeasure over the lack of negotiating spirit Facebook and Google have brought to the halls of Parliament in Canberra.

In fact, after Day 1’s proceedings were completed, Hanson-Young, in her role of chairing the Senate inquiry, gave the Silicon Valley tech media giants an almighty serve in response to their testimonies.

Hanson-Young even went as far to express that their tactics of sticking to their own principles threaten an essential pillar of democracy in Australia, that of a free press.

And Hanson-Young, in return, has shown the Senate inquiry’s challengers that she is ready to wage a toe-to-toe battle, or even a bumpy ride, to fight for better journalism in Australia.

“We know that Australians value good quality journalism in this country. And in order to make good quality journalism in this country sustainable [to this point], we’ve needed to pay for it,” Hanson-Young said after the opening day’s formal presentations.

“The tech giants have been getting away with it for far too long, and with very little regulation, and one of the results is that journalism in this country is suffering,” she added.

Moreover, Google – through testimony and statements provided by Mel Silva, its managing director in Australia and New Zealand – has threatened to geo-block its services to Australian users should the Digital Media Code Bill come to fruition.

“The principle of unrestricted linking between websites is fundamental to search and coupled with the unmanageable financial and operational risk,” Silva said.

“If this version of the code were to become law, it would give us no real choice but to stop making Google Search available in Australia.

“This is our worst-case scenario, we do not want to be in this situation, we would love to get to an outcome where there is a workable outcome for all parties,” she added.

Meanwhile, Hanson-Young views Google’s position as a devious negotiating tactic equivalent to holding Australian users over a barrel.

“We are going through elements of the legislation, and there may be elements that need to be tweaked,” Hanson-Young admitted, in fairness.

“But I’ll tell you what – you don’t walk into the Australian Parliament, even if you’re among the biggest companies in the world, and especially if you’re not paying tax in this country, and blackmail the Australian Parliament and expect to get your way,” she added.

 

Greens senator Sarah Hanson-Young, holding tech giants to account in chairing an inquiry into the Digital Media Code Bill (Photo from abc.net.au)

 

Silva said during the opening day’s testimonies that Google has a history of negotiating with other countries to cut deals and bring about compromises with media companies and news publishers where the latter groups get financially compensated but at rates that are suitable to them.

“There is, however, a workable solution for Google where we would pay publishers for value, they would create and curate content and panels that would exist across several Google services. These are deals that have been done all around the world, 450 so far,” said Silva.

Meanwhile, Facebook has adopted a similar stance to that of their Silicon Valley tech neighbours, also threatening to cease with publishing links and stories from Australian media providers upon passage of the Digital Media Code.

If this exists as a virtual case of Facebook unfriending Australian content consumers, Simon Milner, vice president of public policy at Facebook, sees it as his company’s unwavering corporate policy.

Milner told the inquiry that his company had three concerns about the proposed legislation and that a possibility of a series-circuit or daisy-chain effect could ensue, starting with the mandating of commercial arrangements with every Australian media publisher.

“The sheer volume of that we regard as unworkable,” Milner maintains, in defence of Facebook’s position.

Milner also says that his company has issues with the nature of negotiations between parties as being one of binding arbitration versus an open system of good faith negotiations, leading to a non-differentiation clause.

That clause essentially means that prevents one of the tech companies, such as Facebook, from offering commercial terms to certain publishers and changing how content is displayed regardless of whatever deals have been agreed to or not.

“It means if one publisher is out, [then] all Australian publishers are out,” Milner said.

Hanson-Young rejects the notions of the tech giants, seeing their positions as untenable towards the big picture of striking fair deals for Australia’s media companies.

“If you ever needed an example of what big corporate power looks like, this is it,” Hanson-Young said.

“This is a failure of the market – and it’s about time that we regulate big tech, and it’s about time that we ensure that big corporations do not continue to have such a stronghold over democracy,” she added.

At present, amounts of collective remunerations have been debated, although those in the mainstream press – such as Nine chairman Peter Costello and News Corp Austral-Asia CEO Michael Miller – have bandied about $600 million to $1 billion as being the appropriate figures.

With the inquiry is set to continue this week, Hanson-Young said that while negotiations between the government and the tech giants may be inevitable, the Digital Media Code is a much-needed element of overall media reform, and possesses a far-reaching impact.

“The way we ensure that is to ensure that all of this country’s outlets, no matter whether it’s The Guardian, the Sydney Morning Herald, or any of the local country newspapers, the ABC, the public broadcasters, that their content created by those journalists and media agencies is actually paid for,” Hanson-Young said.

“These big tech giants have been taking this content, and using it as a part of its business model to make big profits from it for far too long.

“It has to change,” she added.

 

Also by William Olson:

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MEAA issues wish list over proposed media reforms

The union which oversees its member journalists and others involved with media and creative arts in Australia has issued a list of concerns in conjunction with two major media reform-related actions, less than a fortnight away from the federal Parliament convening for the first time in 2021.

The Media, Arts and Entertainment Alliance (MEAA), in a pair of general statements speaking for the position of the entire organisation, has forwarded its submission for the Senate Media Diversity inquiry as well as a separate submission aimed at the News Media Bargaining Code Bill (2020).

The latter submission – put forth just on the Senate’s closing date of January 18 – has the MEAA playing its part to contend with the presence of digital giants such as Facebook and Google, and ensuring that the Silicon Valley giants pay Australian media providers fairly for running their content.

The flow of funds into directly producing domestic content, via bargaining agreements between any of the digital giants and any single domestic-based media provider, and the fear of negotiations breaking down or not possessing its intended results of renumeration exists as one of the MEAA’s collective fears over the bill.

“MEAA objects to the Code’s incorporation of a two-way value exchange principle will diminish the Code’s effective operation. It is an unreasonable concession by the [Morrison] government,” the union said in its submission.

The MEAA would also like some form of explanation, in economic or mathematical formulas or otherwise, as to how individual media outlets will be compensated by Facebook or Google to run their content.

“MEAA is unaware of any reliable means of rationally calculating the ‘benefits’ of Google and Facebook referring traffic to news company websites. It is an overly-elastic concept that is barely articulated or defined in the bill,” the MEAA says.

“In MEAA’s opinion, this measure will frustrate bargaining and resolution of disputes about the value of news content carried by Google and Facebook. MEAA submits that this concession be dispensed with, or at the very least, critically evaluated during the mandatory review scheduled within one year of the Code’s commencement,” the union added.

In the former submission, the Senate media diversity inquiry to be chaired by Greens senator Sarah Hanson-Young, the MEAA provided a list of areas of recommendation that it would like to see covered when the inquiry commences.

  • Amend competition and other laws to prevent mergers that lead to more harmful levels of media concentration
  • The Australian government must urgently progress the Mandatory News Media Bargaining Code and extend the operation of the Public Interest News Gathering (PING) program
  • The Australian government should review and adapt critical measures recommended in the United Kingdom and Canada such as: directly funding local news; offering taxation rebates and incentives; and part-funding editorial positions
  • Government assistance should be reset to ensure funding is available for new media organisations, as well as traditional media companies
  • Public broadcasters must be funded in a way that acknowledges the need to provide comprehensive, high-quality cross-platform media content in all parts of Australia
  • The future of the AAP should be sustained through regular, annual relief grants
  • And the regulation of media content should be strengthened and overseen by a single entity

“2020 [saw] the best and the worst of Australia’s media,” the MEAA has observed.

“Australians have relied on journalists and news outlets [in 2020] in a way that hasn’t been experienced in many years.

“It has shown public interest reporting at its finest,” the MEAA adds.

However, the MEAA, in its dot-points of desires for the Senate inquiry, it observes that a paradox exists where while news organisations are breaking new ground in public interest journalism and reporting, economic declines among news organisations remain a part of a stark reality in the journalism industry, as evidenced in a decade-long trend.

And just like with the News Media Bargaining Code Bill, the presence and impact of digital giants such as Facebook and Google looms large.

Previously, layoffs of editorial positions in the thousands have occurred in the last ten years, and 1000 of those job losses in 2020 alone, which the MEAA has tied into the influence of digital publishing as well as a lack of diversity in the mass media in Australia.

“The loss of these journalists, sub-editors, photographers and other positions – and in many cases the mastheads that once employed them – means fewer outlets are covering matters of public interest and significance. In our view this has led to a dangerous fall in media diversity,” the organisation added.

Moreover, the MEAA is also concerned with the lack of ethical conduct of media organisations, and in the mainstream in particular, and has tied this into the lack of diversity and competition therein.

“The power of the few is not always wielded in a responsible or ethical way. In some instances, it has led to a rise in news coverage where the veracity of content is often untested and where ‘balance’ in news reporting can equate to the publication of meritless or misleading arguments,” the MEAA stated.

The MEAA has also implored that integrity issues – particularly in the reputation around the tabloid culture represented in the mainstream media – need to be discussed in the Senate inquiry, or any debate on media reform.

“In a truly plural media environment, the capacity of one voice to steer public opinion in a particular way is limited. In Australia, getting one powerful voice offside can have damaging consequences,” the MEAA stated.

“Where too few voices dominate the media landscape, journalists have reduced job options and might be forced to stay at an outlet because of a lack of opportunities.

“In order to keep their jobs, some inevitably feel pressured to abide by editorial preferences they might not be comfortable with, or which run contrary to the MEAA Journalist Code of Ethics,” the MEAA added.

The Senate inquiry, as well as debates on the News Media Bargaining Code Bill, could occur at any time after the federal Parliament reconvenes from its summer break as early as February 2, subject to a drafting of an agenda of items.

Nonetheless, these two legislative matters – and the MEAA’s potential to use its influence upon shaping them – illustrate that media reform areas will emerge as a hot-button topic throughout 2021.

 

Also by William Olson:

Porter’s bills may sink BOOT into penalty rates, warns Burke

Corruption viewed within fine print of super reforms

Now is not the time for subsidy cuts, says ACTU

Qantas workers cannot be denied sick leave, says ACTU

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Josh Frydenberg Seems Confused But He’s Not The Only One!

When I saw a brief headline saying that Josh Frydenberg was calling for a roadmap from Dan Andrews, I thought, Josh obviously has trouble using that tricky GPS because anything that came after the 1980s is a problem for him. Then I read the article and I realised that he was actually wanting to know the plan for bringing Melbourne out of Stage-4 lockdown.

Mr Andrews rather pathetically suggested that it would all depend on future events which is not something that the Liberals ever do. They always have a plan even if it isn’t exactly clear what it is. And they can tell us about the future. I mean, who could forget Scott Morrison’s: “We’ve brought the Budget back into surplus next year!” They even have the coffee mugs to prove that it happened. Unfortunately, there was no Budget delivered in the May so the predicted surplus didn’t happen but that – like everything else – wasn’t their fault.

Dan Andrews has been upsetting quite a lot of people recently… although it’s mainly Liberals who are frustrated that some people are failing to blame him for not being in total control when he should be, because it’s only when he assumes control that they can call him “Dictator Dan” which is their best nickname for a Labor leader since “Electricity Bill”. Someone I know has accused Dan Andrews of a) trying to spread a vicious lie that COVID-19 is more deadly than your average cold, and b) completely incompetent because he let the various spread killing thousands… I’ve read somewhere that the mark of an intelligent person is the capacity to hold two ideas simultaneously so I’ve decided that said person is in the Einstein category.

However, 2020 has produced a number of people who seem similarly blessed. For example, just a few weeks ago, Sam Newman was suggesting that he might run for Lord Mayor of Melbourne on a platform of stopping the lawlessness and anarchy that this city has been witnessing. However, just recently he was calling for 250,000 people to ignore the lockdown and congregate in the city to protest the silly restrictions placed on Melburnians. It has since been discovered that Sam has donated his brain to science sometime in 2019 because he personally hadn’t found a use for it and very much doubted that he’d be using it at any time in the future.

Still, Sam was an ex-sportsman who recently lost his long time job as a resident idiot on “The Footy Show”, so it’s only reasonable that he should consider taking on the only other job where being an idiot is an advantage: politics.

And, while on the subject, isn’t it good that Tony Abbott is going on welfare in Britain. I mean he always said that the best form of welfare is a job and it looks like they’re going to give him one that suits his talents down to the ground. He’s going to be negotiating agreements and he has a lot of good form on that. Remember how successfully he negotiated with Tony Windsor and Rob Oakeschott, or his success at getting legislation through the Senate, or even convincing his back-bench to keep him as leader. Yes, it seems it’s one of those schemes to give a person a job just to keep them busy because there’s no way they’d get it on merit.

It’s been a confusing week all round, but the one thing that’s really got me confused is the suggestion that the MSM wants to be paid for Google or Facebook “using” their stories. I’m going to ignore Facebook for a second because it’s a bit more complicated but the basic point remains.

  1. Google started as a search engine which was just that. It made no money. It just gave you a way of finding things you wanted.
  2. Google became a capitalist and started doing things so that it could make money by getting people to pay it to advantage them in searches.
  3. Historically, media companies didn’t use the internet, but like everything if you’re not on the internet you don’t exist. (If anyone argues with that, I will make the obvious point that they are on the internet!)
  4. Some media companies put up their news content for free; others have a paywall.
  5. Because news is available on the internet, advertising revenues are down for traditional news outlets.
  6. The media now want Google to pay them because Google is sending people to media companies’ websites without giving them any money for sending people to the media companies’ websites.

Now there are a lot of implications and there are a number of things that need to be ironed out, like how do we keep investigative journalists going if there’s no money in it, however, when you boil it all down, it’s media companies’ business model that’s collapsed. The idea of making Google pay for sending people to the website is so contrary to the original concept of a search engine that you can only see it if you look it in principle. Consider these and explain the difference:

  1. Imagine that I run a chain of cinemas and business is down. I decide that film critics should pay me for reviewing any film in my chain.
  2. My clothing brand has its name on the T-shirts it sells. Business is down so I decide that people exhibiting my brands logo on the shirts should have to pay a fee every time they wear it.
  3. A judge on “Masterchef” recommended people eat at my restaurant. I want payment if he ever mentions it by name again.

In all these cases, you can see that the “get stuffed” element is likely to be very strong. Where does it leave me if nobody mentions me again?

Similarly, if Google simply changes its algorithm so that no Australian media company pops up when people do a search, what’s Rupert’s next step?

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Dear Mr Murdoch

By Bob Rafto.

Dear Mr Murdoch

Life’s good for an old fella it seems and may you live long to enjoy it. However, there is a growing chorus of voices who would prefer that you don’t.

What I wish to write to you about is my disgust towards your attitude that Australia is a mere entry in a balance sheet: one where paltry tax is paid but where your yields and power are great. One where you are able to squeeze $882 million from a Murdoch friendly government. One where you can be seen in the likes of Google, Apple and Microsoft (to name a few) and collectively benefit from the ‘legitimate’ evasion of what denies Australia an alleged $10Billion in taxes.

murdoch taxThe Australian tax system has been designed with its current rates to generate sufficient tax revenue to help meet Australia’s many needs. Yet you, Mr Murdoch, are our country’s greatest risk as you endeavor to avoid paying your share of this tax. This all adds up to not only derailing our economy but denying services to any number of Australians.

So in effect, as the society becomes less affluent it will impact on demand for goods and services and undoubtedly it will impact on your own profits, as it will on any corporation with business in Australia. It’s commonsense. On the other hand, if you paid your taxes you are helping to build the economy which in no doubt will increase the profits of your goods and services, yet you choose to be a corporate leaner on 23 million Aussies.

Australia is the country that catapulted you to become one of the richest and influential persons of your time and your thanks to this great country is to rip off its citizens with a behaviour that I compare to that of a common corporate thief.

I believe there was once an admiration of your achievements by the Australian public, however this sentiment has been changing rapidly over the past few years and the sentiment emerging is now one of hate.

In simple words, Mr Murdoch, you are a burden on the tax system. In my eyes you are stealing from us.

Keep this in mind, Mr Murdoch, if you and the others keep on taking and taking there will be a point when there will be nothing left to take.

Yours in contempt

Bob Rafto

 

Move over Rupert – Google now calls the shots

Rupert Murdoch was once asked: “of all the things in your business empire, what gives you the most pleasure?” Murdoch instantly replied: “being involved with the editor of a paper in a day-to-day campaign…trying to influence people”.

I don’t think many on the Left side of politics would argue with that.

His attacks on the Labor Government in Australia during the 2013 election campaign and the Labour Opposition in Great Britain demonstrate this.

Heavyweights in the independent media harbour the ambition that one day they too will have to power to influence election outcomes, however they are resigned to the likely scenario that it could take at least a decade for the alternative media to have the numbers to wield such power.

Now they have an unlikely ally.

Internet giant Google.

Business Insider reports that in the United States ‘Google will have a massive influence on the 2016 presidential race’ by deciding ‘which results pop up when people enter a search term’. Hm, that’s interesting. But how?

Google’s ‘search engine manipulation effect’ (SEME) allows Google to ‘take a diverse group of undecided voters, let them research the candidates on a Google-esque search engine, then tally their votes — never mentioning that the search was rigged, giving top link placement to stories supporting a selected candidate’.

‘Essentially it comes down to Google’s ability to decide which results pop up when people enter a search term’. Researchers, they write, expected this bias would sway voters, but ‘they were shocked by just how much: Some voters became 20 percent more likely to support the favored candidate’.

So to put it simply, Google can have ‘extraordinary power over how voters cast their ballots’.

Looking at the United States again (where the research is being carried out), by making a minor tweek to its algorithms only negative or positive stories about Donald Trump will dominate the returns from a Google search.

Matt Southern from the Search Engine Journal writes that:

If Google’s search algorithm started to surface more positive results than negative for a candidate, searchers could end up having a more positive opinion of that candidate.

This kind of influence could sway election results given that most presidential elections are won by small margins.

Is this dangerous? Possibly, but no more dangerous than the control and influence that Murdoch holds.

But would Google ever do it?

Maybe. Imagine this: Al Gore had considered entering the 2016 presidential race. Did you know he was once an adviser at Google?

One of Al Gore’s first moves upon leaving office was to take a job at Google as an adviser. Al Gore took this job a full three years before the company went public in 2004, and it is rumored that Gore received stock options that were valued at as much as $40 million.

If Gore had decided to run, I’m sure someone at Google could have tweeked the algorithm to his advantage.

And we would have never known.

By the way, did I mention that Rupert Murdoch hates Google?