Microsoft is urging the US to adopt a version of an Australian bill that would force Google and Facebook to pay news publishers for their stories, arguing that it would “strengthen democracy” and “support a free press”.
The law requires Google and Facebook to pay a fee yet to be determined for including links to news articles on their platforms. Critics say it’s unfair that tech giants have included them for free, increasing their own advertising revenue in the process.
The bill, currently before an Australian parliamentary committee, is being closely monitored by media executives around the world as a possible model for other countries, as media outlets have been particularly affected by the pandemic during the last year.
The bill in Australia is being closely monitored by media executives around the world, who see it as a possible model for other countries, as media outlets have been particularly affected by the pandemic during the last year.
The Trump administration had opposed the Australian proposal, saying it was penalizing two large American companies. But in a blog post on Thursday, Microsoft President and CEO Brad Smith said the Biden administration should not fight Australia’s bill, but “copy” it.
“What about compensating independent news organizations for the benefits that technology gatekeepers get from this content?” Smith wrote. “Australia’s proposal will reduce the negotiation imbalance that currently favors technology gatekeepers and help increase opportunities for independent journalism. But this is a crucial issue of our time, which goes to the heart of our democratic freedoms.”
Data tracking firm eMarketer said Google and Facebook this year will control more than 50% of all digital advertising dollars spent in the United States, with a revenue of more than $ 90 billion. Google is expected to earn $ 50.2 billion, about 29.3 percent of the total U.S. digital ad market, while Facebook will account for $ 40.76 billion, or 23.8 percent of the market in 2021.
Google has been pushing furiously against Australian law. If it happens, the Silicon Valley giant has threatened to shut down the search engine in Australia. Facebook has said it will stay in Australia, but may restrict users from being able to select articles on their sites.
Microsoft has an important aspect to the game, noting that its own search engine known as Bing, which currently owns only 5 percent of the search business, would be happy to focus on non-compliance.
In France, Reuters reported Friday that after years of legal disputes, Google agreed to a three-year deal that would pay $ 76 million to a group of publishers that includes the country’s largest newspaper, Le Monde. But publishers who were left out of the deal felt it was unfair and said Google deliberately split the publishing industry to avoid higher payment.
In the UK, Google said this week that it had reached an agreement with 120 publishers, including Reuters and the Financial Times, to pay for the content of its new Google News Showcase as part of a program to invest $ 1 billion in publishers around the world for the next three years. . News Corp., father of The Post and editor of the Times of London, is not involved.
David Chavern, president of the News Media Alliance, a group of publishers that includes News Corp., applauded the events in Australia and said he hopes to see it expanded in the United States.
“This is a tremendously important step towards preserving high quality journalism, not just in Australia, but around the world.”
He called the Australian bargaining code “a model of historical significance, similar 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 has been introduced in the House and Senate, would give news publishers the opportunity to overcome antitrust barriers and collectively negotiate compensation for use with technology platforms. of its content. The New Media Alliance is pushing the pace.