Byers Market: Thunder Down Under: Facebook threatens to block news in Australia

Plus: Doug McMillon goes to war with Amazon Prime, Eric Yuan sees a major Zoom bump and President Trump fuels the book industry.

View in browser September 1, 2020 By DYLAN BYERS in Los Angeles & AHIZA GARCÍA-HODGES in San Francisco Good morning. ⏲️  TikTok's sale deadline is 15 days away. The Microsoft-Walmart alliance remains in pole position; the Oracle-led consortium is still in the running. Both groups are trying to thread the needle between Washington and Beijing.   🛒   Breaking overnight: Doug McMillon says Walmart's Amazon Prime competitor, Walmart+, will launch nationwide Sept. 15. Its aim is to stem the flight of Walmart customers to Prime.   Join the Market: 🗞️ Newsletter | 🎙️ Podcast Drew Angerer/Getty 🇦🇺  Moving the Market Facebook threatens to block news in Australia   Facebook is threatening to make it impossible for users in Australia to share news content on both Facebook and Instagram if the government passes a new law altering the financial arrangement between publishers and online platforms. It is a major escalation in Facebook's long fight with one of its most aggressive regulators. •  The new rules, which have the backing of Rupert Murdoch's News Corp, would force Facebook and Google into giving news outlets a bigger cut of digital ad revenue. It is the most aggressive effort yet by any nation to curb Silicon Valley's power over the news business. As Facebook execs see it, the new law is untenable. It would force them to enter into revenue-sharing agreements with publishers where the final terms would be decided by independent arbitrators — and Facebook would have no recourse to back out of the deal. •  "We tried to make this work," Campbell Brown, Facebook's VP of global news partnerships, told us. "We proposed our version of something workable. ... Unfortunately, there are so many things in this proposed legislation that just make it untenable." •  In a post last night, Brown said Australia had left Facebook with two choices: "removing news entirely or accepting a system that lets publishers charge us for as much content as they want at a price with no clear limits. Unfortunately, no business can operate that way." •  "Assuming this draft code becomes law, we will reluctantly stop allowing publishers and people in Australia from sharing local and international news on Facebook and Instagram," she wrote.   Google has previously said that its services could be "at risk" if Australia puts the new code in place, but Richard Gingras, its VP of news, did not respond to a request for comment.   •  The search giant has responded to previous efforts by European countries by simply removing their news outlets from Google News, often dealing a blow to the nations' news industries.   For Murdoch's News Corp, which dominates Australia's news industry, the legislation is a win. Murdoch has led the industry's fight against Facebook and Google, criticizing the platforms publicly and launching a much-lampooned news aggregator called Knewz. •  Facebook finally agreed to pay publishers millions of dollars a year to feature their content in a dedicated news tab. Fittingly, it was News Corp chief Robert Thomson who appeared with Mark Zuckerberg last October to announce the news.   What's next: The new Australian rules would establish a panel of arbitrators who would determine the price that Facebook and Google must pay publishers. The platforms would have no recourse to exit the agreement and would face fines as steep as 10 percent of their overall revenue in Australia for each offense.   •  While news accounts for a relatively small part of Facebook and Google's overall revenue, the ability to access and share news is seen as part of the platforms' appeal. Depriving users of the ability to share news could thus have larger reputational effects.   •  Of course, things would get worse if other countries were to follow Australia's lead. But Brown told me that Facebook is committed to expanding its news efforts globally and that she is not worried about ripple effects: "I think Australia is an outlier," she said.   The big picture: Whether Australia's effort is an overall win for the news industry is still very much up for debate. Many believe harsh regulations are counterproductive and could undermine publishers' ability to benefit from the distribution offered by the tech giants. •  Bloomberg's editorial board says the move will "reduce publishers' traffic, depress ad revenue, erode competition, impede innovation and needlessly deprive consumers of a valuable service." Outgoing New York Times Company chief Mark Thompson is similarly wary. Bloomberg/Getty 🗳️ Moving Menlo Facebook to review its 2020 election influence   Facebook is partnering with independent researchers to study its own influence on the 2020 U.S. elections, part of a wider effort to protect elections globally and win back some goodwill after its failures during the 2016 presidential election.   •  The research, which will be based off user behavior on Facebook and Instagram, will be led by professors from New York University and the University of Texas at Austin who will not be compensated and will have total control over what they publish.   What's next: Facebook expects 200,000 to 400,000 users to opt into participating in the study, per WSJ's Jeff Horowitz. 🇺🇸  Talk of the Trail  🇺🇸     Republican megadonors like Sheldon Adelson and Bernie Marcus are expected to back a new super PAC bolstering President Donald Trump's re-election bid, Politico's Alex Isenstadt scoops.   What's next: A $30 million ad blitz led by Chris LaCivita, the GOP strategist behind the 2004 Swift Boat takedown of John Kerry. Bloomberg/Getty 🌁  Big in the Bay Zoom touts 335% sales growth   Eric Yuan reported a 355 percent jump in Zoom sales during the company's second quarter, far exceeding analysts' estimates and firmly establishing his ability to capitalize on the surge in tele-conferencing brought on by the Covid-19 pandemic.   •  Revenue more than quadrupled year-over-year to $663.5 million, and the company now touts 370,200 business customers. Shares rose more than 9 percent on the news.   The big picture: "Zoom has emerged as one of the clearest corporate beneficiaries of the COVID-19 pandemic, which has forced millions of people to remain home to prevent the spread of the virus," Bloomberg's Nico Grant writes. •  In his earnings statement, Yuan said "organizations are shifting ...  to supporting a future of working anywhere, learning anywhere and connecting anywhere on Zoom's video-first platform."   What's next: Yuan is focused on international growth, especially in India, Grant writes. He is also looking to "expand spending on sales, marketing, capital expenditures and research and development," and "exploring an entry into the market for virtual events." Market Links     • Reid Hoffman, Mark Pincus join SPAC boom (Inf.)   • Peter Szulczewski files to take Wish public (CNBC)   • Kathryn Murdoch wants to reform elections (WaPo)   • Suzanne Scott comes under fire at Fox News (DB)   • President Trump fuels the book business (NYT) 📚   What's next: 15 Books to watch for in September, via NYT's Joumana Khatib.   See you tomorrow. Follow Dylan Byers Follow Ahiza García-Hodges Get the NBC News Mobile App Privacy Unsubscribe

Trump suggests some 'very stupid rich people' are bankrolling protesters in DC, around country

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Tuesday, September 1, 2020 Good morning and welcome to Fox News First. Here's what you need to know as you start your day ... Trump tells Laura Ingraham 'some very stupid rich people' are likely responsible for funding protest groups, rioters at RNC and across US President Trump, speaking to Fox News' Laura Ingraham in an exclusive interview Monday night, said he believes demonstrations outside the White House last week were bankrolled by "some very stupid rich people" and said he will reveal who told him that in the future. Trump also revealed that an RNC attendee had traveled to Washington "on a plane from a certain city, and in the plane it was almost completely loaded with thugs wearing these dark uniforms, black uniforms with gear and this and that." "This person was coming to the Republican National Convention and there were like seven people in the plane [with] this person, and then a lot of people were on the plane to do big damage," Trump insisted. "This is all happening." The president also slammed Portland Mayor Ted Wheeler as "incompetent" after the Democrat blamed Trump for the violent confrontation that led to the killing of a Patriot Prayer supporter in the Oregon city over the weekend. CLICK HERE FOR MORE ON OUR TOP STORY. In other developments: - Trump appears to back claim suspected teen gunman acted in self-defense, rips 'left-wing political violence' - Patriot Prayer leaders says Portland shooting victim supported group - Trump allies challenge Biden's tougher tone on riots, note support for fund bailing out protesters - DOJ 'targeting and investigating' leaders, funders of far-left groups and rioters, Wolf tells Tucker - GOP lawmaker argues left is 'funding, in a huge way,' protests and riots across US Progressives demand Portland's mayor, police chief resign following deadly weekend shooting, protests A number of progressive groups in Portland, Ore., have released a letter demanding the resignations of Mayor Ted Wheeler and police chief Chuck Lovell after the deadly shooting that occurred in the city over the weekend as skirmishes broke out between supporters of President Trump and Black Lives Matter protesters. "What took place last night was inevitable given Mayor Wheeler's repeated failure," the letter said, according to the Oregonian. "He has not protected or supported Portlanders. We do not have confidence in his ability to course-correct. He must resign." Bobbin Singh, the executive director of the Oregon Justice Resource Center, also called for the local leaders to resign. Wheeler told a news conference he had reached out to Trump telling the president "we both need to be held accountable," and offering to work with him. CLICK HERE FOR MORE. In other developments: - Portland mayor sends open letter to Trump: 'No thanks' - Portland protesters stage sit-in at mayor's home -- after he and Trump trade barbs - Feds say 74 face charges stemming from Portland protests - Oregon sheriffs reject Gov. Kate Brown's request to staff Portland protests Mnuchin says Trump wants relief money for jobs, kids; Democratic leadership doesn't want to negotiate Treasury Secretary Steven Mnuchin said on Monday President Trump is ready to provide relief money for jobs and children, but Democratic leaders don't "want to negotiate in good faith," despite agreement on "many, many issues, but the Democrats do not want to "budge on their top-line spending figure." Speaking to FOX Business, the treasury secretary told Lou Dobbs "The president wants to help us with more money for kids and jobs," but House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer refuse to settle. "We're going to keep trying because it's too important for the American people," he told Dobbs. Mnuchin added that the government could "always come back and do more" if the initial $1 trillion-plus is not sufficient. CLICK HERE FOR MORE. In other developments: - Trump would sign $1.3T relief package, White House official says - Mnuchin urges Dems to pass $1T coronavirus stimulus deal but won't speculate on aid compromise - Mnuchin says Dems 'willing to compromise' on coronavirus stimulus package as negotiations stalled CLICK HERE TO GET THE FOX NEWS APP TODAY'S MUST-READS: - Oregon sheriffs reject Gov. Kate Brown's request to staff Portland protests - Portland fatal shooting victim's friend: 'They executed my partner. They hunted him down' - Chaffetz rips Schiff, says House Intel chair should 'lose his security clearance' for leaking classified info - This big-city mayor seen dining indoors while city's restaurants can only serve outside - DC Mayor Bowser calls for prosecutions after recent unrest in city - 'Benadryl challenge' is a dangerous and deadly fad on social media: medical experts THE LATEST FROM FOX BUSINESS: - Chinese export restrictions on AI tech could complicate TikTok sale: report - City faces new obstacle after riots: Sky-high demolition costs - JCPenney proposes to sell company out of bankruptcy #TheFlashback: CLICK HERE to find out what happened on "This Day in History." SOME PARTING WORDS Sean Hannity reminded viewers of "Hannity" Monday the "season of lies and smears is well underway." He said Democrats are "complicit partners" with the media and they speak with one voice. Not signed up yet for Fox News First? Click here to find out what you're missing. Fox News' Go Watch page is now available, providing visitors with Pay TV provider options in their area carrying Fox News Channel & Fox Business Network. Fox News First is compiled by Fox News' Jack Durschlag. Thank you for making us your first choice in the morning! We'll see you in your inbox first thing Wednesday.

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