Microsoft says it supports Australia's proposed new laws forcing Google and Facebook to pay for news content and it would be “willing to live by these rules”
(Reuters) - Microsoft Corp said on Wednesday it fully supported proposed new laws in Australia that would force internet giants Google …
Context & Ripple Effects
Microsoft’s position follows Australian Prime Minister Scott Morrison’s assertion that Bing could fill a gap left by Google if Google withdrew search over the payment dispute. By accepting the proposed framework, Microsoft turns a regulatory fight aimed at Google and Facebook into a competitive positioning issue for search.
The stance became part of a broader policy campaign: Brad Smith later called for other countries to adopt Australia’s approach, while Microsoft worked with European publisher groups on payments from gatekeepers.
First-order effects
- Google and Facebook, the platforms targeted by Australia’s proposal, face a stronger political contrast with Microsoft, which says it would comply with the same payment rules.
- Microsoft positions Bing as a search provider prepared to operate under the proposed Australian regime, rather than treating the rules as grounds to exit the market.
Second-order effects
- Google’s and Facebook’s responses to the proposal become a competitive variable for Bing, because Morrison had already raised Bing as an alternative if Google pulled its search service.
- Publishers gain a high-profile platform ally for payment mandates, reinforcing the lobbying effort Microsoft later pursued with Europe’s largest publishing groups.
Third-order effects
- If Australia’s model is adopted elsewhere, news-payment obligations would shift from a bilateral dispute toward a cross-market gatekeeper rule, with Microsoft seeking to shape the terms alongside publishers.
- Search competition may increasingly turn on regulatory compliance as well as product reach when governments link platform access to compensation for news content.
The trend: Australia’s news-payment proposal is becoming a template for publisher-backed rules that apply payment obligations to major digital gatekeepers.