Product & Startup Builder

Facebook vs Australian News

Added on by Chris Saad.

The Facebook/Australian news situation is pretty simple:

If you try to blackmail a corporation into paying you for displaying stuff that’s freely available on the Internet, they can choose to stop displaying your stuff and sending users your way.

If the value of their displaying your stuff and sending you traffic is so high (hence the outrage), then you shouldn’t be expecting them to pay you for it as well.

The proposed Australian law shows the stranglehold that Murdock and the other News companies have on the Australian government, and the abject failure of the Australian government to understand how the Internet works.

Facebook has eaten their lunch and then called their bluff - and now they’re upset.

The best strategy for news orgs is simple: Build better products, find new business models, and stop trying to use government regulation to compensate for years and decades of failed execution.

This is part of a broader trend of governments and legacy companies throwing tantrums because tech companies are disrupting their business models through better, more user-centric products..