Aussie tycoon to help small publishers strike deals with tech giants

SYDNEY • Australian mining billionaire Andrew Forrest's philanthropic organisation will help 18 small news publishers in the country to negotiate collectively with Google and Facebook to secure licensing deals for news content.

Mr Forrest's Minderoo Foundation yesterday said it would submit an application with the regulator, the Australian Competition and Consumer Commission, allowing the publishers to bargain without breaching competition laws.

Mr Forrest, Australia's richest man, is the chairman and largest shareholder of iron ore miner Fortescue Metals Group. He has a net worth of around A$27.2 billion (S$26.9 billion), according to the Australian Financial Review.

Facebook and Google have been required since March to negotiate with Australian outlets for content that drives traffic and advertising to their websites. If they do not, the government may take over the negotiation. Both firms have since struck licensing deals with most of Australia's main media companies but have not entered into agreements with many small firms.

The federal government is scheduled to begin a review of the law's effectiveness next March.

Frontier Technology, an initiative of Minderoo, said it would assist the publishers.

"Small Australian publishers who produce public-interest journalism for their communities should be given the same opportunity as large publishers to negotiate for use of their content for the public benefit," Ms Emma McDonald, Frontier Technology's director of policy, said in a statement.

Google and Facebook did not immediately respond to requests seeking comment.

The 18 small publishers include online publications that attract multicultural audiences and focus on issues at a local or regional level, Ms McDonald said.

The move comes after the competition regulator last month allowed a body representing 261 radio stations to negotiate a content deal.

News organisations, which have been losing advertising revenue to online aggregators, have complained for years about the big technology companies using their content in search results or other features without payment.

REUTERS