Google warns users in Australia free services are at risk if its forced to share ad revenue with big media

Back in April the countrys government announced it would adopt a mandatory code requiring the two tech giants to share ad revenue with media business after an attempt to negotiate a voluntary arrangement with the companies failed to make progress.

Googles open letter instructs users to expect to hear more from it in the coming days without offering further detail so it remains to be seen what additional scare tactics the company cooks up.

Consultation on the draft code closes on August 28, with the ACCC saying last month that it intends for it to be finalized shortly, so Googles window to lobby for changes is fast closing.

Its not the first tech giant to try to repurpose the reach and scale of its platform to mobilize its own users to drum up helpful opposition to government action that threatens its corporate interests.

Such efforts have, it must be said, only had very fleeting successes vs the scale of the platforms regulatory reform ambitions.

But its interesting to see the tactic moving onto the front page of Google perhaps signalling the scale of alarm the company feels over the prospect of being forced to share ad revenue with publishers whose content it monetizes, creating a model that other countries and regions might seek to follow.

In a statement responding to Googles open letter, the ACCC went on the attack accusing the tech giant of publishing misinformation about the draft code.

This will address a significant bargaining power imbalance between Australian news media businesses and Google and Facebook, it goes on, adding: A healthy news media sector is essential to a well-functioning democracy.

Original article