Media giants unite to deceive in Google, Facebook cash grab


ACCC chairman Rod Sims says "the world is watching" Australia as the media code makes an impact even before passing into law.
Any day now, Telstra will cuddle up to the federal government seeking to have legislation to force eBay to compensate the phone company for the $630 million it lost on Trading Post.
That will be followed by Blockbuster and smaller rental outfits wanting Scott Morrison to go Netflix, Foxtel and Stan for what they did to the local video store.
Foxtel â no stranger to getting money in dubious circumstances from this government â will want laws to force Netflix, Stan, iView and SBS On Demand to pay up for âstealingâ Foxtel subscribers. (A holding operation pending the Murdoch myrmidonsâ preferred course of having the ABC and SBS exterminated or at least sold off.)
Old Rupert Murdoch himself is next in line to have the Prime Minister recover from Facebook the $710 million he lost on MySpace. (Anyone remember MySpace?)
Four absurd cases â but they are actually less absurd than the governmentâs current legislation to force Google and Facebook to compensate select advertising media for the fact that Google and Facebook are better at selling ads than they are.
The four silly examples are at least straight forward â better mousetraps take the money, old mouse-trappers want some of it back.Â
The main protagonists in the present Government and MSM v Google and Facebook battle are pretending itâs not about mousetrap compensation, but the cheese business.

Rupert Murdochâs News Corp is accusing Google of stealing its revenue. Photo: Getty/TND
The MSM, predominantly Murdoch and Nine Entertainment with assistance from Guardian Australia, are pretending itâs about the journalism business, pretending Google and Facebook are âstealingâ their journalism â when itâs really about the advertising.
Itâs what Crikeyâs Bernard Keane last August termed The great Google-Facebook heist â the sovereign risk that dares not speak its name. Â Â
It is ironic that the government and its cheer squad are now claiming thereâs a sovereignty issue in Googleâs opposition to the scheme.
Showing a mixture of tribalism and self-interest, Murdoch journalists and those employed on the papers-formerly-known-as-Fairfax are campaigning hard. Mr Keane has again belled it, Media abandons balance in pursuit of Googleâs billions.Â
That was published just before the Sydney Morning Heraldâs political and international editor, Peter Hartcher, demonstrated the point with perhaps the most tortured feature heâs ever written, Spare us the Google-eyed crackpots: the case for a viable news business.
In many, many words, Mr Hartcher ran through the genuine evils of social media conspiracies and âfake newsâ, rambled into Craig Kellyâs ratbaggery and Scott Morrisonâs feeble response, and then jumped to the conclusion that âAustralia finds itself at the forefront of trying to stamp its authority over the digital worldâ with the Morrison governmentâs digital media bargaining code to âmake the US-based multinationals pay Australian professional media outlets for using their newsâ.
Astoundingly for a senior journalist, he then claims:
âThus far, the Big Tech firms simply distribute the local media companiesâ news to the users of Google or Facebook.â
Anyone who uses Google â and thatâs 99 per cent of us â knows that is not true.
Predominantly, a Google search provides the link to stories on the media companiesâ web sites. Whether those sites are paywalled is up to the companiesâ business model. If someone clicks through to the site, the media company has the opportunity to present advertising before the customerâs eyeballs and gain revenue.
Yes, itâs more complicated than that and how Google and Facebook target information, twist searches, control advertising and harvest and use customersâ data is appalling. That could do with genuine government action including some Teddy Roosevelt-scale trust busting.
And the tech giantsâ ability to avoid taxation is equally appalling. It would be more legitimate for the government to do its job of collecting all the tax that should be collected and then, if the case for journalism as a public good is made, subsidising it.
But that would stray into matters way too difficult and dangerous. Who would want the government to decide what journalism deserved supporting, especially this government of media mates thatâs persecuting the ABC?
So the government is running with a lie instead. Bernard Keane:
âThe code is justified by a News Corp lie, that Google steals news content and makes billions of dollars from it. The ACCC forensically compiled evidence that this was false. Knowing that the News Corp claim was wrong didnât prevent Treasurer Josh Frydenberg from spreading it himself.â
The most astounding aspect of the Murdoch and Nine campaign is the hypocrisy.
Yes, journalism and other industries are in trouble because theyâve lost advertising revenue, some of it because more efficient disruptors came along, some of it because of incompetent management, some of it because management chose to sell it off.Â
I donât remember Mr Hartcher or anyone else in a Fairfax organ ringing the alarm bell about lost advertising revenue when the company decided to sell off 40 per cent of its Domain real estate advertising business.
Similarly, the Fairfax decision to reject an offer to get in on the Seek ground floor cost it billions when Seek proceeded to âstealâ Fairfaxâs job ads revenue. I wonder if Nine will now seek compensation from Seek?
Perhaps Nine will also seek compensation from News Corp as its subsidiary, REA, âstoleâ the biggest slice of the real estate ad business after Murdoch did with REA and real estate what the old Fairfax didnât do with Seek and job ads.

Real estate advertising has seen a tug of war between the big outlets. Photo: Getty/TND
News paid $10.25 million for 44 per cent of REA 20 years ago. Over the years it has crept that stake up to 61.6 per cent, a stake now worth $13 billion, accounting for most of News Corpâs value.
Maybe Nine and News Corp can both go after Carsales.com, which âstoleâ the best of the car ads.
Another form of hypocrisy was on display from Guardian Australiaâs managing director, Dan Stinton, when the Nine mastheads ran his pro-code opinion.
âIn an effort to mitigate the impact of updates to these opaque algorithms, the code requires that the digital platforms give at least 14 daysâ notice to publishers of material changes which will impact on the traffic we receive,â Mr Stinton said.
Yes, the newspapers want advance notice of the evil tech giantsâ distorting algorithms that game customers so the newspapers can play the distortion game themselves in internet searches.
Michael Miller, Australasian executive chairman of Rupert Murdochâs News Corp, has claimed the tech mobs should pay Australian media companies much more than Nine chairman Peter Costelloâs estimate of $600 million dollars every year.
Thatâs more than a little rich if this whole money grab is supposed to be about public interest journalism.
Former media analyst turned fund manager, Mike Mangan, didnât hold back in reaction to Rupert Murdochâs speech upon receiving a lifetime achievement award from the UK Australia Day Foundation.
Mr Mangan and the Murdoch empire have history. In the formerâs media analyst days, there were two occasions when he thought News Corp shares were overvalued and he therefore posted a âsellâ signal. It cost him his job when the weight of the empire was brought to bear.Â
So when Rupert Murdoch said:
âFor those of us in media thereâs a real challenge to confront: a wave of censorship that seeks to silence conversation, to stifle debate,to ultimately stop individuals and societies from realising their potential. This rigidly enforced conformity, aided and abetted by so-called social media, is a straitjacket on sensibilityâŚâ
Mr Mangan wrote in his Monday newsletter:
Iâm sorry but this is total BS. âCancel cultureâ is Murdochâs very raison dâetre.
Across the last 70 years not a week, maybe not a day, has gone by without his media outlets demanding someone, somewhere be fired.
The indiscretions triggering such demands could be real or imagined. Or just convenient.
When fired âNews of the Worldâ editor Greg Miskiw was asked what his job description had been, he simply replied: âdestroy other peopleâs livesâ.
Iâve heard his sycophants chuckle over whether a media public company CEO had a mortgage or not. The CEO was not playing their game and had to go.
âCancel cultureâ Murdoch style. He spent a lifetime destroying commercial competitors â all legal mind you.
Job (largely) complete, heâs moved on to cancelling public broadcasters.
The first thing you learn from dealing with folks like Rupe et al, is that what they say is meaningless. Their âskillâ is their ability to spin self-serving drivel with such gravitas that they are widely believed.
Mr Mangan wrote more, but you get the drift.
Murdochâs Australian newspapers are behind paywalls. Google searches send potential readers to those walls. To claim Google is stealing Murdoch journalism, is the aforementioned self-serving drivel â but facts donât get in the way of a determined Murdoch campaign.
Google and the other supranational giants should be forced to pay the right amount of tax, not have a dodgy (and technically convoluted) code imposed to primarily benefit News Corp and Nine Entertainment shareholders.
P.S. That seems to be pretty much the same conclusion Paul Barry came to on Media Watch on Monday night.Â
Disclosure: The New Daily is one of the publishers that are part of Google Showcase, Googleâs preferred method of paying some money for journalism.
Want to see more stories from The New Daily in your Google search results?
- Click here to set The New Daily as a preferred source.
- Tick the box next to "The New Daily". That's it.








