What You Need to Know About the Facebook News Ban in Australia

The Facebook news ban in Australia has been making all the headlines lately. Last week Facebook announced that it will no longer allow Australians to view or share news content. ? This is completely the opposite of Google’s news approach in Australia. We dive into both strategies below.

Facebook News Ban in Australia

Why is Facebook Banning News in Australia in the First Place?

Australia first proposed a News Media and Digital Platforms bill back in December 2020. This bill basically requires Facebook and Google to pay the companies of news articles to display and link to their content. Right now if you see an article on your Facebook news feed there are Facebook ads surrounding it. The website publisher will not get any ad revenue until you visit their website. The Australian government is trying to protect its local news publishers from big companies, like Google and Facebook, from driving them out of business.

What Does Facebook Think of This New Bill?

In 2019 52% of Americans received their news from Facebook. That is a huge stat, it seems like that amount of reach would only help distribute the news articles to drive more traffic to their sites. Mark Zuckerberg, CEO of Facebook, probably went ahead with the ban assuming the same. In his mind he may be thinking Facebook is helping the news companies so why should he pay them on top of the traffic?

Here’s How Differently Google and Facebook Reacted to the Australian News Bill

Google responded by making agreements with Australian publications. They want to work with the Australian Government. Facebook on the other hand banned all news articles completely. This means no more Facebook news at all for Australians. If an Australian wants to share an article about the new best surfing spot, Facebook’s algorithm will figure out if it is a news article and not allow it to be posted.

Investing Outlook for the Facebook News Ban

With the Facebook news ban in Australia, Google should have a large presence for news articles. Will Google reap the overall reward with more traffic due to the almost exclusive place for news in Australia? Or will the news articles have less traffic without the Facebook news linking people to their sites. This is a perfect way for Facebook to test out its income without news. It has recently been the target of many governments for polarized news articles, and it would probably be relived if it can continue profitability without having the news headache that has been created.

Google on the other hand is working with news articles and although they will have to pay them to use their news, Google could become the news platform. This could drive more ad sales and traffic to Google resulting in more profitability. The bottom line is that there is possible success or failure for both companies independent of the other. The main questions you should ask yourself before investing are where is the current revenue coming from? Could these new strategies greatly affect that income? These answers will help guide you to the right investing decisions.

Published 2/20/2021

3 Reasons why YP Investors will help you become a better investor:

  1. Technical and Fundamental Investing Tools: At YP Investors we have many useful investing resources in addition to Wall Street News. We pride ourselves on Technical Analysis for stocks. We focus specifically on Point and Figure Charting. We have many tools which you can try for free that will help you analyze stocks and make winning investments. We also know that Fundamental Analysis is key to successful investing which is why we include many important fundamentals in our tools.
  2. Free Investing Tools: YP Investors is also known for our free Stock Options Calculator. This comes in handy for finding the optimal options contract to go with based on your target stock price. Options can be used in many ways and this tool will help you find the best strategy for you. Simply enter the stock, the options contract information, and your price target and instantly you have all 4 different options contracts projected outcomes. Of the 4 outcomes two are for when you are bullish and two are for when you are bearish. It’s fast, easy, and best of all free!
  3. Free Investing Resources: A couple additional free resources from YP Investors that we need to mention is the investing blog full of strategies and investing knowledge and our numerous investing tutorial videos. We have a variety of videos that cover the use of our tools, investing strategies, and specifics on Point and Figure Charting. In fact on of our most popular video’s is our Point and Figure Charting Tutorial. Make sure to check all of them out to help set yourself up for success in investing!

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll to Top