Microsoft says Google and Facebook should pay publishers for news



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Microsoft is urging the United States to pass a version of an Australian bill that would force Google and Facebook to pay news publishers for their articles, arguing it “would strengthen democracy” and “support a free press.”

The legislation requires Google and Facebook to pay fees yet to be determined for including links to news articles on their platforms. Critics say it’s unfair that tech giants include them for free, thus increasing their own ad revenue.

The bill, currently before an Australian parliamentary committee, is being closely watched by media executives around the world as a possible model for other countries as the media have been particularly affected by the pandemic over the past year. .

The bill in Australia is being watched closely by media executives around the world, who see it as a possible model for other countries as the media have been particularly affected by the pandemic over the past year.

The Trump administration had opposed the Australian proposal, saying it sanctioned two large American companies. But in a blog post Thursday, Microsoft President and Chief Legal Officer Brad Smith said the Biden administration should not be fighting the Australian bill, but “copying” it.

“What’s wrong with paying independent news agencies for the benefits technology controllers get from this content?” Smith wrote. “Australia’s proposal will reduce the negotiating imbalance that currently favors tech gatekeepers and help increase opportunities for independent journalism. But it is a decisive question of our time, which goes to the heart of our democratic freedoms.

Data tracking firm eMarketer said Google and Facebook this year will command more than 50% of all digital advertising dollars spent in the United States, grossing more than $ 90 billion between them. Google is expected to bring in $ 50.2 billion, or about 29.3% of the total digital advertising market in the United States, while Facebook will account for $ 40.76 billion or 23.8% of the total. market in 2021.

Google has lobbied fiercely against Australian legislation. If that passes, the Silicon Valley giant has threatened to completely shut down its search engine in Australia. Facebook said it will remain in Australia, but may restrict the ability of users to select articles on its sites.

Microsoft has its skin in the game, noting that its own search engine known as Bing, which currently only owns 5% of search activity, would be happy to step into the breach.

In France, Reuters reported Friday that after years of legal wrangling, Google has agreed to a three-year deal that will pay $ 76 million to a group of publishers including the country’s largest newspaper, Le Monde. But publishers who were excluded from the deal called it unfair and said Google deliberately divided the publishing industry to avoid a bigger payout.

In the UK, Google this week announced that it has reached an agreement with 120 publishers, including Reuters and the Financial Times, to pay for the content of its new Google News storefront as part of a scheme to spend $ 1 billion to publishers around the world over the next three years. . News Corp., parent company of The Post and publisher of The Times of London, is not participating.

David Chavern, chairman of the News Media Alliance, a group of publishers that includes News Corp., applauded the developments in Australia and said he hoped to see it expand in the United States.

“This is an extremely important step towards preserving high quality journalism, not only in Australia but around the world.”

He called Australia’s trading code a “model of historic significance – akin to the creation of the music licensing system – which is already changing the debate over the future of news publishing.”

In the United States, the Journalism Competition & Preservation Act, which was introduced in the House and Senate, would give news publishers the ability to overcome antitrust hurdles and collectively negotiate with technology platforms compensation for the use of their content. The New Media Alliance is pushing for its adoption.

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