News Corp inks Australia Facebook deal, signalling truce after blackout

News Corp inks Australia Facebook deal, signalling truce after blackout

News: News Corp inks Australia Facebook deal, signalling truce after blackout.

SYDNEY (Reuters) – Rupert Murdochs News Corp has entered into a content delivery agreement Facebook Inc in Australia, the companies said Tuesday, a move to resolve a dispute in which the social media giant temporarily closed thousands of sites in the country.

The agreement, the terms of which have not been disclosed, makes News Corp the first major media company to reach an agreement Facebook operate under controversial new laws that allow an Australian government-appointed arbitrator to set fees when companies fail to do so.

Facebook’s suspension of all media content in the country for a week last month angered world leaders as the blackout spanned emergency services and state health sites. It ended the shutdown when Australia agreed to soften some parts of the new regulations.

News Corp, which owns about two-thirds of Australia’s major city newspapers, was one of the media outlets asking the government to do so Facebook and Alphabet Inc.’s Google pay for the media links that direct viewers and advertising dollars to their platforms.

Google had also objected and threatened how for months Facebookto pull core services out of the country before contracts were signed with most media outlets – including News Corp – in the days leading up to the rules’ going into effect.

“The agreement with Facebook is a milestone in reshaping the trading conditions for journalism and will have a material and significant impact on our Australian news business, “said Robert Thomson, CEO of News Corp, in a statement addressing the Australian Prime Minister, Treasurer and Antitrust Authority by name thanked.

“This digital resolution has been in the works for more than a decade,” added Thomson.

FacebookAndrew Hunter, head of Australia’s News Partnerships, said the deal targeted Facebook’s 17 million users “will have access to premium news articles and breaking news videos from News Corp’s network of national, metropolitan, rural and suburban newsrooms.”

In addition to the country’s best-selling tabloids, The Daily Telegraph in Sydney and The Herald-Sun in Melbourne, News operates a subscription cable television network called Sky News, which has signed a separate contract Facebook Deal, the terms of which, according to News Corp. were not disclosed.

News Corp was the first to say it hit one Facebook Deal, but free-to-air television and newspaper publisher Seven West Media Ltd previously signed a letter of intent.

On Tuesday, Seven Rival Nine Entertainment Co Holdings Ltd reported in the Australian Financial Review that they had also signed a letter of intent for a Facebook Deal.

A spokesman for Nine said the company, which publishes the Sydney Morning Herald, “continues to have constructive and fruitful discussions Facebook (and) if we have something to announce, we will do so ”.

ON Facebook The spokesman declined to comment on the nine negotiations.

Reporting by Byron Kaye in Sydney and Uday Sampath in Bengaluru; Adaptation by Shinjini Ganguli and Gerry Doyle

Original Source © Reuters

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