Google strikes news pay deal with major Australian media company

A news company in Australia has come to a deal with Google for the company to be paid to have its content displayed in Google’s News Showcase. 

The multimillion-dollar deal between Seven West Media and Google has another 30 days before it becomes official, The Guardian reported. Seven West Media’s chairman, Kerry Stokes, said the deal gives “fair payment” to the company for its content.

Neither Seven West or Google revealed the exact numbers of the deal.

The deal came after Google threatened to shut down its search engine in Australia after a law was proposed that would force them to pay news outlets for news. 

“Our new partnership recognises the value, credibility and trust of our leading news brands and entertainment content across Seven and West Australian Newspapers,” Stokes said.

“Google is to be congratulated for taking a leadership position in Australia and we believe their team is committed to the spirit of the proposed code,” he added. 

Showcase licensing deals are a way for Google to pay news outlets without paying for the news displayed in search results, according to The Guardian. Google is currently in talks with other Australian media outlets about the feature.

Facebook has developed a similar feature called Facebook News and is reportedly talking to a news company in Australia about the feature. 

Facebook and Google “are very focused on what’s happening here in Australia but I sense they are also trying to reach deals, and that is welcome,” federal treasurer for Australia, Josh Frydenberg, said on ABC radio.

Google has reached deals with more than 450 publications across the globe and two weeks ago announced it had started paying several smaller Australian websites, according to The Associated Press.