Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Microsoft President Brad Smith. Photo: David Ryder/Bloomberg via Getty Images

Microsoft President Brad Smith told Axios in an interview that the U.S. and other countries should consider adopting media rules like those Australia is poised to soon enact to force tech companies to pay publishers for content.

Why it matters: Both Facebook and Google have said they can't run their businesses as usual with the code in effect and warn that if Australia passes it as expected, they'll pull some of their services from the country.

"I would be the first to acknowledge that we recognize that this is an opportunity to combine good business with a good cause," Smith told Axios.

  • Microsoft has backed Australia's planned code, suggesting it could help even the playing field in search and make Microsoft's Bing search engine a more viable competitor for Google.
  • Smith noted that Microsoft, which has a revenue-sharing program with publishers through Microsoft News, would be able to bring more revenue to publishers in Australia if it had more market share.
  • "We can't share revenue unless we have revenue to share," he said.

Catch up quick: The new bargaining code is expected to be delivered to Australian lawmakers as soon as this Friday, and passed within the next two weeks. That would make Australia the first country to force Google and Facebook to compensate news publishers or else face hefty fines.

  • In response, Facebook says it may block users from being able share news links in Australia. Google says it may have to stop making Google Search available in the country.
  • Other tech giants can be added to the code if regulators find enough evidence that their size or scope could drive a power imbalance with news companies.

Several key tenets of the code could be taken up in the U.S. and other countries, Smith argued, even without importing the rules wholesale.

  • "We shouldn't be too quick to conclude that we can't innovate in the U.S. the way the Aussies are," he said.
  • Already, U.S. lawmakers have proposed giving news publishers an antitrust exemption similar to a provision in the Australian code that would let them band together to jointly negotiate against tech platforms.
  • Smith said that's one area where the U.S. could follow Australia's lead, along with imposing transparency obligations on the platforms and requiring them to go through an outside arbitrator to negotiate payments with publishers for linking to their content.

Between the lines: Google and Facebook take particular issue with the arbitration clause in Australia's code, which would also see a government-appointed panel set the payout rate if the parties can't reach a deal.

  • Sources say that the tech giants worry that involving third-party arbitrators could help publishers successfully make unreasonable demands.

The other side: Smith said this style of negotiation, commonly known as baseball arbitration for its use in the MLB, "encourages reasonable negotiation."

  • "This is a tried-and-true matter around the world," he said.

The big picture: Both Google and Facebook have in recent months created new features that steer money to news outlets without having to totally reimagine their businesses.

  • Google has started to roll out its "Google News Showcase" product in the U.K. and Argentina. Facebook launched its Facebook News Tab last week in the U.K.

What to watch: News Corp, the global publishing giant run by Rupert Murdoch, has been aggressively lobbying for such reforms, as it owns a sizable portion of the newspaper market in Australia.

  • Smith said he hasn't himself spoken with anyone from the company after Microsoft came out in favor of the law last week, but that News Corp has since reached out to others at Microsoft.

The bottom line: "Sometimes it takes someone who has a powerful microphone to ensure that many voices are heard and that's not a bad thing," Smith argued.

Go deeper: Tech coughs up money for news as regulatory threats loom

Go deeper

New Jan. 6 body camera footage shows Trump supporters attacking officer

New body camera footage obtained by CNN shows the moment a DC police officer was brutally attacked by Trump supporters during the Capitol Hill insurrection.

Driving the news: The release of video comes a day after Republican members of Congress sought to downplay the Jan. 6 events, with some lawmakers calling the rioters "peaceful patriots" and comparing them to tourists.

Mike Allen, author of AM
2 hours ago - Politics & Policy

Liz Cheney's plan to take on Trump

Cheney speaking to reporters after being removed as GOP conference chair yesterday. Photo: Kevin Dietsch/Getty Images

Rep. Liz Cheney (R-Wyo.) plans to make her purge the beginning of a new movement, with campaign travel, fundraising and speeches to challenge Donald Trump for ideological dominance of the GOP.

Driving the news: Sources in Cheney's camp tell me her message will be the importance of the truth, the need to move past Trump, and a push to articulate conservative policy and substance to combat Democrats.

Exclusive: Stephen and Ayesha Curry join One Million Black Women initiative

Stephen Curry and Ayesha Curry. Photo by Steve Jennings/Getty Images

Stephen and Ayesha Curry are joining the advisory council for Goldman Sachs' One Million Black Women initiative, Axios is first to report.

Why it matters: The initiative has committed to invest more than $10 billion in Black women over the next 10 years. It comes as banks and large companies are increasingly putting money behind rhetoric about advancing racial equity.