University of Greenwich BUSI 1475 Essay: Tech & News Conflict

This essay, submitted for the University of Greenwich's BUSI 1475 Management in Critical Context module, analyzes the conflict between major tech companies like Google and Facebook, and news media corporations, particularly in the context of Australia's 'Bargaining Code'. The essay explores the concepts of technological and sociological globalization, using Facebook and Google as examples. It examines how these companies distribute ads and generate revenue, contrasting them with the shifting consumption patterns of news sources. The core of the essay is a detailed discussion of the conflict, including the provisions of the 'Bargaining Code', the debates surrounding it, and the actions taken by both Google and Facebook. The essay incorporates theories from the module, such as globalization, technology and networks, and conflict resolution, to provide a comprehensive understanding of the issues.

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University of Greenwich (UOG)
Bachelor of Arts (Hons) Business Management (Top Up)
ASSIGNMENT / PROJECT COVER SHEET
(to be completed individually by student)
UOG ID Number 001163775-7
Course Specialization
(*Please delete whichever is not applicable)
*Marketing and Sales
Subject Code/Name BUSI 1475 / Management in Critical Context
Assignment Title Essay (100%)
Lecturer/Supervisor Mr. Chris Paget
Word count 2941
DECLARATION
I, the above named student, confirm that by submitting, or causing the attached assignment
to be submitted, I have not plagiarized any other person’s work in this assignment and
except where appropriately acknowledged, this assignment is my own work, has been
expressed in my own words, and has not previously been submitted for assessment.

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Table of Contents
I. INTRODUCTION ................................................................................................................................ 4
II. FINDINGS ........................................................................................................................................... 4
1. Globalization ................................................................................................................................... 4
1.1. Facebook – As an Example of “Technological Globalization” concept .......................... 4
1.1.1. The concept of “Technological Globalization” ............................................................ 4
1.1.2. Facebook’s Users Motivation ....................................................................................... 5
1.2. Google – As an Example of the “Sociological Globalization” concept ........................... 5
1.2.1. The concept of “Sociological Globalization” ............................................................... 5
1.2.2. Google’s users motivation ............................................................................................. 5
2. Technology and networks ............................................................................................................. 6
2.1. Choices of News Sources are gradually shifting from Traditional Media to Digital
Media in Australia ............................................................................................................................... 6
2.2. Google’s Ads Distribution Technique and Revenue Amount .......................................... 7
2.3. Facebook’s Ads Distribution Technique and Revenue Amount ...................................... 8
3. Conflict and co-operation .............................................................................................................. 9
3.1. Provisions of the law .............................................................................................................. 9
3.2. What caused the conflict between Google and News Media Corporations? .............. 10
3.3. Facebook’s Debate .............................................................................................................. 10
3.3.1. Facebook’s first move against the “ Bargaining code” ........................................... 10
3.3.2. Facebook’s Discussion points .................................................................................... 11
3.4. Google’s Debate ................................................................................................................... 11
3.4.1. Google’s action towards the legislated law .............................................................. 11
3.4.2. Google’s Discussion Points ........................................................................................ 12
III. Discussion ..................................................................................................................................... 12
1. Summary of Theories approach in the module ........................................................................ 12
1.1. Globalization ......................................................................................................................... 12
1.2. Technology and networks: Information Society ............................................................... 13
1.3. Conflicts ................................................................................................................................. 13
IV. CONCLUSION .............................................................................................................................. 13
V. REFERENCES ................................................................................................................................. 14

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List of Figures
Figure 1: Main Source of news (Roy Morgan, 2020) .................................................... 7
Figure 2: Google's yearly revenue from 2002 to 2020 (Statista, 2021b) ...................... 8
Figure 3 Facebook's yearly revenue - 2009-2020 (Statista, 2021a) ............................. 9

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I. INTRODUCTION
Throughout the years, the development of technology has been creating myriads of
opportunities for the current society. During the pandemic, big Tech Companies create more
innovative and modern devices supporting for the healthcare sector. From my perspective,
as Tech Corporations have been stably accelerated, the world could have more chances to
transform into the new era. In the past, as the first stages of technology development, the
world had shown dramatic change in their behavior and their lifestyle. Companies
encountered to more opportunities to develop more sustainably. Facebook and Google are
two global corporations, and they have considerably contributed to the transformation into
new era. However, the article on CNBC News indicated the conflict between these Tech
Corporations and the News Corporation in Australia. Australia’s government had enforced a
law, which could threaten to the financial situation and the operation process of these digital
platforms.
Below is the comprehensive analysis and discussion about the conflict, including the Findings
and Discussion parts. In the Findings, the conflict will be illustrated, using the theories learned
during the module. In the Discussion part, the theories will be illustrated to show the
understanding about the theories learnt during this module.
II. FINDINGS
1. Globalization
In the article discussing about the conflict between Australia and two big tech companies,
Google and Facebook. The core of the conflict relates to two concepts of the Globalization:
the technological globalization and the sociological globalization. Facebook’s platform
dramatically illustrates the concept of Technological Globalization. As its main goal is to bring
people from all around the world together. For Google’s platform, the entity describes clearly
the concept of Sociological Globalization. As Google’s users are able to access information
from all around the world in real time (Mijail, 2014). Below are the comprehensive analysis
of the two concepts of Globalization
1.1. Facebook – As an Example of “Technological Globalization”
concept
1.1.1. The concept of “Technological Globalization”

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The core of technological globalization is due to the emergence and quick spreading pace of
technology, which partly reduce the limitation of border (Lumen Learning, n.d.). Before the
diffusion of technology, time was one of the concerns to the way people receive news. People
had to wait for the news channels on television and that took hours of time to be updated with
the current news (Elezaj, 2018). To date, as a result of the digital transformation process,
more and more people have the access to the internet. The data in 2021 from the "Statista"
indicated that there were more than 4 billion internet users from all around the world, which
was nearly 60 percent of the world population (Johnson, 2021). Thus, the opportunity of
technological access has enhanced internet users’ need for a fast and convenient means of
news reading.
1.1.2. Facebook’s Users Motivation
A research had been carried out to analyze Facebook’s user motivation. The result collected
from the research proved that most of users’ motivation are to be connected with their friends,
and to be up-to-date with the news all around the world(Burešová, 2016). This ever-demanding
news reading requires content creators to utilize social media sites, like Facebook, to
globalize the information and reach their audiences.
1.2. Google – As an Example of the “Sociological Globalization”
concept
1.2.1. The concept of “Sociological Globalization”
Similar to the concept of "Technological Globalization", this concept is about reducing the
hindrances to updating, spreading worldwide information and ideas (tutor2u, n.d.). "Social
Globalization" allows users to approach the cultures of many countries through any platforms
or any means that allow the “ideas sharing” worldwide (Guzel, Arslan and Acaravci, 2021).
Which partially create the opportunities to approach different lifestyles among people, and
gradually change the consumers' behavior as well (Guzel, Arslan and Acaravci, 2021). For
instance, Generation Z in Vietnam tend to be affected by the international cultures (Vietnam
Briefing, 2019). Which could illustrate the emergence of diversified and personalized needs
in this generation. Thus, for the brands target Gen Z customers, the shifting to offer more
personalized products have been gradually acknowledged.
1.2.2. Google’s users motivation

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The report conducted in 2019 by the "News Media Alliance" indicated that News Content
accounted from 16% to 40% of search results on Google (News Media Alliance, 2019). Which
could indicate the users motivation and Google’ global dominance. This is a result for the
corporation’s detailed work and adjustment on the platform. Google has been building and
updating several models to help analyze and identify the user's language and intention
(Google, n.d.). Especially, Google has developed a tool to increase search experiences of
users, called "Recommendation System"(Google, n.d.). Besides the attempt of analyzing the
language, the platform also focuses on identifying the category of search queries to increase
the accuracy for search results (Google, n.d.).
2. Technology and networks
Australian Government has legislated the "Bargaining Code", forcing Google and Facebook
paying for the contents they are using to distribute ads. To explain for this code, the algorithms
of ads distribution and revenue amount of these Big Techs will be indicated below.
2.1. Choices of News Sources are gradually shifting from Traditional
Media to Digital Media in Australia
The survey conducted by Roy Morgan, a market research company illustrates the news
source that the Australians been consuming. The statistical graph below comparing the
survey results of 2018 and 2020, which indicates the considerable changing of the
Australian’s news consumption.

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Figure 1: Main Source of news (Roy Morgan, 2020)
As we can see from the graph, TV fell into the decline in 2020 but this source remains the
reliable news source in Australia. On the other hand, the second main source nominated by
the Australians was the "Total Internet". This option demonstrated an increase in the online
news consumption rate, accounted for approximately 61% of Australians in 2020. This
sudden increase might be the result of COVID-19 pandemic. In addition, March 2020 was a
harsh year with the Australians and the world due to the outbreak of the pandemic (Attanasio,
2021). Thus, the need for reliable and fast information about the pandemic had been driving
the enhancement of online news consumption rate and accelerating the consumption rates
of other news sources such as Google News, News websites, and Social media sites.
2.2. Google’s Ads Distribution Technique and Revenue Amount
Google Ads is considered cost-efficient to businesses as Google implements the "pay-per-
click" tool. Specifically, each time a user clicks to the ads of those businesses’ products,
Google will cost them the certain amount calculated by their algorithm. Google will distribute
the ads to search results page, or to the channels called "Display network" which allows
advertisers to distribute on mobile apps and the non-shopping platform websites (Word
Stream, 2020). Accordingly, Google has been able to generate huge amount of revenue.

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"Statista" conducted a report about Google's yearly revennue from 2002 to 2020 (Statista,
2021b). The steady growth of Google's revenue will be illustrated in the graph below.
Figure 2: Google's yearly revenue from 2002 to 2020 (Statista, 2021b)
As you can see from the graph, Google has been demonstrating steady from 2002 to 2002.
With a huge number of users and innovative technology. In 2020, Google's revenue was
approximately 182 billion dollars, which mostly derived from digital advertising.
2.3. Facebook’s Ads Distribution Technique and Revenue Amount
Facebook distributes the ads by analyzing the target audiences’ profile following the
advertiser’s request. The background includes demographics, psychographics, geographic.
Furthermore, the advertisers could request the time and places to distribute ads. According
to “Facebook Ads”, they will try to personalize the ads to make the advertising work efficient
in cost, which should be suitable to the advertisers’ budget (Facebook Business, 2021). With
the efficient advertising on Facebook’s media site, the corporation has been able to build
strong credibility and generated huge amount of revenue. "Statista", a German Company
concentrating on the "Market and Consumer data" published the report about Facebook's

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yearly revenue from 2009 to 2020. The below graph illustrates the collected data from the
report.
Figure 3 Facebook's yearly revenue - 2009-2020 (Statista, 2021a)
As you can see from the graph, the revenue Facebook generated in 2020 was approximate
86 billion dollars, which were mostly derived from the advertising.
3. Conflict and co-operation
This section’s purpose is to illustrate, discuss and analyze the conflict claimed in the article.
The law legislated by the Australian government will be identified and discussed in the first
part. Then, the debates against the law of two Tech Giants, Facebook and Google, will be
illustrated and analyzed in the next two parts.
3.1. Provisions of the law
In the month of December 2020, the Australia’s government has legislated the law called
“Bargaining Code”. The code enforces Tech Corporations to pay for the news contents that
they are using to distribute ads. With the information collected from “BBC News”, the law
comprises of two provisions. The first provision is to request the Tech Companies to engage
in the negotiation with the News Media to bargain the paying amount (BBC News, 2021).
Arbitral tribunal will intervene the negotiation and enforced two parties come to the final offers.

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Furthermore, to balance the competition between media companies and digital platform
companies, the government also enforced the second law provision. Tech Companies will
have to inform the Media Companies about the improvement plan of their algorithms, which
could have the impact on the news contents (BBC News, 2021).
3.2. What caused the conflict between Google and News Media
Corporations?
The conflict in the article is described as Google has been utilizing the news contents to
approach their users as well as distribute the ads. For Facebook, more and more users have
been sharing and reading the news on this site, which caused the imbalance competition for
the journalism. In addition, the average income that news content creators in Australia receive
per year is approximately 65 thousand dollars (Glassdoor Australia, n.d.). Thus, the Australia
Government has enforced the “Bargaining Code” which was against the fundamental system
of digital platforms and arouse the conflicts. For Tech Companies, they have to make lots of
investment in innovating and enhancing the technology of the platform. However, that did not
force them to charge the users, they are most well known as the free sites that allow people
to expand the connection, share and explore information on the internet. As a result, enforcing
the Tech Companies to pay for the news contents would cause the risks that related to the
finance and operation of the digital platforms (Baker, 2021).
3.3. Facebook’s Debate
In the debate of the Tech Giants Facebook, the response of Facebook towards the law will
be illustrated as the first main point to be located. Then, the discussion points of Facebook
pointed out from the article will be illustrated and analyzed in this essay, as a way to
summarize comprehensive information to evaluate the conflict.
3.3.1. Facebook’s first move against the “ Bargaining code”
In February, Facebook had banned the Australian users from sharing the news on the media
site as the way of showing the disagreement of the big Tech Company (Flynn, 2021).
However, this action of the Company caused dissatisfaction and inconvenient experiences
for the users in Australia (Taylor, 2021). Additionally, this move of Facebook had caused bad
reputation for the Tech Giants globally, specifically is the declaration from the Canadian
Heritage Minister Steven Gulibeault (Deutsche Welle, 2021). He claimed that Canada would

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focus on balancing the playing field between News Media Corporations and Tech Giants.
Thus, this legislation of Australia might become the major hindrance to Facebook's global
development, which requires the corporation to discover a way to remain the financial
situation and create an effective environment for the News sites as well.
3.3.2. Facebook’s Discussion points
Facebook said that the Australian News Publishers had failed to acknowledge the benefits
that Facebook has been providing. This social media site could dramatically help the news
publishers gain more traffics, which would make the website more profitable (Baker, 2021).
However, this legislation of Australia would seriously cause disadvantage as this event has
been attracting many regulators from other countries (Khadem, 2021). Furthermore,
Facebook also emphasized that their users only approach "less than 4%" of the news content.
Importantly, Facebook even help the news publishers increase the number of traffics, which
was up to 5 billion of free referrals (Khadem, 2021). In addition, what could be proven is that
news content on social media is not highly considered reliable by the Australian. Specifically,
the data collected from the "Yellow Social Media Report 2020" shows that traditional media
still accounts for more than "70%" of people's trust, as this is the reliable news source.
Whereas only "26%" of people having age ranges from "18-29", and "25%" having age ranges
from "30-39" tend to have more trust in the news appearing on social media (Yellow, 2020).
3.4. Google’s Debate
Similar to the Facebook’s Debate, this part will firstly focus on analyzing the action of the Big
Tech Company against the legislated law. Then, the discussion points of Google emphasize
in the article along with many information from different perspectives will be illustrated and
analyzed below.
3.4.1. Google’s action towards the legislated law
In a meeting with the Prime Minister of Australia, Google said that the "Bargaining code"
would cause the inconvenience and disadvantage for the business, and the Australians might
not be able to use Google as the corp. threatened to withdraw the search engine out of the
market. The purpose is to cut deals with the News Companies in Australia (Van Boom and
Wong, 2021). This action of Google was considered to be attracted the corporation's image
as well. Withdrawing the whole system of Google out of the country would damage the

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company in many ways as Google accounted for approximately 94% of the market share
(StatCounter Global Stats, 2021).
3.4.2. Google’s Discussion Points
What Google has been benefiting from the contents on the engine is that myriads of users
visit Google because of the access to free contents. Which has considerably contributed in
the users’ retention attempt of Google and been the basis of making the business profitable.
However, with the huge amount of revenue that Google has been generating from the ads
displaying on those contents unbalanced the playing field for the News Corp. Thus, to remain
the stable growth for the News Corp, Google created a new product called Google News
Showcase. Google has started implementing the substitute method, Google News Showcase.
Google News Showcase is a platform of news reading, in which the system would
immediately bring users back to the original news websites as soon as they click on the news
headline (Beddoe, 2021). Every month, news publishers will be paid for the contents provided
for the platform (Beddoe, 2021).
III. Discussion
1. Summary of Theories approach in the module
This section requires the student to comprehend the theories learned in the module. The
theories will be illustrated below by the student, including “Globalization”, “Technology and
networks”, and “Conflicts”.
1.1. Globalization
Globalization is defined as the process of movements and exchanges people between the
companies, and governments around the world (Paget, 2021, p.3). Globalization has been
promoting the development and innovating the quality of life worldwide. Companies and
Governments have been acknowledging the process and implementing the theories to
diversify and manage the world. According to Anna Lindh, the Former Swedish Minister for
Foreign Affairs claimed that the advantage of globalization is to enforce people to confront
the limitations of present tools, and of politics (Paget, 2021, p. 6). Which stimulates people to
be innovative and discover the way to improve those limitations. However, according to
Barack Obama, the Former President of the United States claimed that the disadvantage is

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that the rapid movements of Globalization require governments to pay more concern to the
people could not follow the pace of development (Paget 2021, p.7).
1.2. Technology and networks: Information Society
Due to the dramatic development of human, technology has been developing in a rapid pace
and transforming the world into the “Information Society”. Definition of “Information society”
could be descried as the increase in the new form of manufacturing, the emergence of digital
platforms allowing people to access information and engage communication in real-time
(University of Greenwich, n.d, p.15, 16). Thus, Information society could create huge
opportunities for entrepreneur and consumer, enhance the environment quality, encourage
people to be flexible in working and everything else.
1.3. Conflicts
In this module, we have had the chances to approach the theory of conflict occurring in the
company. This conflict could be occurred in form of the temporary stoppage of labor by way
of a group of personnel with the purpose of enforcing the benefits. Conflicts in organization
are defined as the behavior and actions indicating the disagreement between workers and
employers (Moore, 2018, p.6, 7).
IV. CONCLUSION
To summarize, Globalization has been resonating with the Technological development
throughout many decades. Google and Facebook have been creating myriads of benefits for
their users, which has been increasing their credibility among other big Tech Corporations. In
field of Business, Google is a critical tool that could help many companies gain more traffic,
diversify the brand’s message and access to myriads of other useful tools. To date, marketers
have been able to optimize the Marketing cost on Facebook. The Tech Corporation has been
constantly updating the platform, which supported the businesses in advertising and
promoting the brand image more efficiently. However, as the Tech Corporations have been
emerged successfully as global brands, they need to create a co-operative environment in
the global market. Which could allow them to continue the development in global markets,
and create win-win relationship with the governments and other sectors besides News
Industry.

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