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Interesting. I know Google had legal issues in Australia(?) because they had a little box that would scrape an answer from a website without you having to go to the website. Content creators are clearly not going to be happy with this, but not citing sources leads to the same confidently incorrect answers people have pointed out in ChatGPT.

I wonder where this will go.

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You're correct. The "News Media and Digital Platforms Mandatory Bargaining Code" requires search engines and social media sites to negotiate terms (including payment) when embedding (and more dangerously, linking to) news content.

(Act is here: https://www.legislation.gov.au/Details/C2021A00021 - sadly it's an amendment which makes it harder to read, but it includes all the pertinent details)

embedding i can understand due to lost revenue, but i really don't understand how linking to articles can possibly be anything but a boon for news outlets. how do news sites think people discover their content in the first place?! i don't know anyone of my generation who still subscribes to a single news outlet for their news.

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