Microsoft calls on US to adopt a version of a proposed Australian law that would force Google and Facebook to pay news publishers for their stories, arguing that it would ‘strengthen democracy’ and ‘free press will support ‘.
The law requires Google and Facebook to pay a yet-to-be-determined fee for including links to news articles on their platforms. Critics say it is unfair that the tech giants included it for free and increased their own advertising revenue in the process.
The bill, which is currently before an Aussie parliamentary committee, is being closely watched worldwide as a possible model for other countries, as media outlets have been particularly hit by the pandemic in recent years.
The bill in Australia is being closely monitored by media executives worldwide, who see it as a possible model for other countries as media outlets have been hit particularly hard by the pandemic in recent years.
The Trump administration has objected to the Australian proposal, saying it has penalized two major US companies. But in a Thursday blog post, Brad Smith, president and chief justice officer, said the government in Biden should not fight Australia’s proposed law, but “copy it.”
“What’s wrong with compensating independent news organizations for the benefits that technical gatekeepers have from this content?” Smith wrote. “Australia’s proposal will reduce the bargaining imbalance that currently favors technical gatekeepers and increase opportunities for independent journalism. But it is a defining issue of our time that is at the heart of our democratic freedoms. ”
Data tracking firm eMarketer said Google and Facebook will invest more than 50 percent of all digital advertising dollars spent in the United States this year, earning more than $ 90 billion between them. Google is expected to generate $ 50.2 billion or about 29.3 percent of the total U.S. digital advertising market, while Facebook will account for $ 40.76 billion or 23.8 percent of the market in 2021.
Google has worked furiously against Australian law. If it succeeds, the giant in Silicon Valley has threatened to shut down its search engine in Australia altogether. Facebook said it would stay in Australia, but that it could limit users’ ability to select articles on their sites.
Microsoft has a skin in the game, noting that its own search engine, known as Bing, which currently has only 5 percent of the search industry, would like to enter the offense.
In France, Reuters reported on Friday that after years of legal battles, Google had agreed to a three-year deal that would pay $ 76 million to a group of publishers, including the country’s largest newspaper, Le Monde. But publishers left out of the deal called it unfair, saying Google was deliberately splitting the publishing industry to avoid a larger payout.
In the UK, Google said this week that it has reached an agreement with 120 publishers, including Reuters and the Financial Times, to pay for the content under the new Google News Showcase as part of a $ 1 billion program to publishers worldwide over the next three years. . News Corp., the parent of The Post and publisher of the Times of London, is not participating.
David Chavern, president of the News Media Alliance, a publishing group that includes News Corp., applauded the developments in Australia and said he hoped to expand them in the US.
“This is a hugely important step in maintaining high quality journalism, not only in Australia but also around the world.”
He calls the Australian bargaining code ‘a model of historical interest – similar to the creation of the music licensing system – that is already changing the debate about the future of news publishing.’
In the US, the Journalists Competition & Preservation Act, introduced in the House and Senate, will give news publishers the opportunity to overcome antitrust barriers and jointly negotiate with the technology platforms for compensation for the use of their content. The New Media Alliance is campaigning for passage.