Australia vs Facebook — and how regulation is splintering the internet, with Atlassian CEO Scott Farquhar

Code Overview

Scott Farquhar, co-founder and co-CEO of Atlassian, discusses Australia's Media Bargaining Code, which mandates tech giants like Google and Facebook to negotiate payments with news publishers. The code emerged from concerns that these platforms benefit from news content without fair compensation, leading to a stalemate where Google considered leaving Australia, while Facebook briefly blocked news content. Scott notes that while the code aims to balance power between tech giants and media, it leaves room for political influence, as the government can threaten to name companies to enforce compliance 1 2.

The problem we've ended up with is that at any stage, that minister for communications could threaten to name them and bring them back to the bargaining table again and again and again.

--- Scott Farquhar

This situation highlights the complexities of regulating digital platforms and the potential for media influence on political decisions 3.

   

Corporate Reactions

The corporate reactions to the Media Bargaining Code were intense, with both Google and Facebook initially threatening to withdraw services from Australia. Google eventually negotiated deals with major news organizations, while Facebook temporarily blocked news sharing before complying with the code 4. Nilay Patel highlights the broader debate on whether such regulations are effective or if they risk fragmenting the internet into national silos 2.

Facebook has blocked users in Australia from seeing and sharing news.

--- Scott Farquhar

These actions underscore the challenges tech companies face in adapting to diverse regulatory environments 5.

   

Global Impact

The Media Bargaining Code's global impact is significant, serving as a precursor for similar regulations worldwide. Scott Farquhar notes that Australia's approach could influence other countries, as seen with the U.S. considering collective bargaining for media companies against tech giants 6. This legislation positions Australia as a test bed for tech regulation, potentially leading to a "splinternet," where different regions enforce distinct internet rules 5.

I think it's a real and growing danger. I don't think we have seen it being implemented in companies just yet.

--- Scott Farquhar

Such fragmentation could complicate global operations for tech companies, increasing costs and entrenching incumbents 7.