Microsoft is asking the United States to adopt a version of an Australian law proposal that would force Google and Facebook to pay publishers for their stories, arguing that this “would strengthen democracy” and “support a free press”.
The legislation requires Google and Facebook to pay a fee yet to be determined to include links to news articles on their platforms. Critics say it is unfair that the tech giants have included them for free, increasing their own advertising revenue in the process.
The project, currently before an Australian parliamentary committee, is being watched closely by media executives around the world as a possible model for other countries, as the media were hit particularly hard by the pandemic last year.
The Australian bill is being closely watched by media executives around the world, who see it as a possible model for other countries, as the media was hit particularly hard by the pandemic last year.
The Trump administration opposed the Australian proposal, saying it penalized two major American companies. But in a blog post on Thursday, Microsoft President and Chief Legal Officer Brad Smith said that the Biden government should not fight against Australia’s proposed law, but rather “copy it”.
“What’s wrong with compensating independent news organizations for the benefits that technology gatekeepers derive from that content?” Smith wrote. “Australia’s proposal will reduce the bargaining imbalance that currently favors technology gatekeepers and help increase opportunities for independent journalism. But this is a defining issue of our time, going to the heart of our democratic freedoms. “
Data tracking company eMarketer said Google and Facebook this year will command more than 50% of all digital advertising dollars spent in the United States, raising more than $ 90 billion between them. Google is expected to raise $ 50.2 billion or about 29.3% of the total U.S. digital ad market, while Facebook will account for $ 40.76 billion or 23.8% of the market in 2021.
Google has been furiously lobbying against Australian law. If approved, the Silicon Valley giant threatened to shut down its search engine in Australia entirely. Facebook said it would stay in Australia, but it could restrict users’ ability to select articles on their websites.
Microsoft has skin in 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 intervene.
In France, Reuters reported on Friday that, after years of legal disputes, Google has agreed to a three-year deal that will 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 considered it unfair and said that Google has deliberately divided the publishing industry to avoid paying more.
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 of its new Google News Showcase as part of a program to spend $ 1 billion on publishers worldwide. world over the next three years. News Corp., parent of The Post and editor of the Times of London, is not participating.
David Chavern, president of the News Media Alliance, a group of publishers that includes News Corp., applauded developments in Australia and said he hoped to see them expanded 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 the Australian trading code “a model of historic importance – 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 Journalism Competition and Preservation Act, which was introduced in the House and Senate, would give news publishers the ability to overcome antitrust barriers and collectively negotiate with technology platforms to compensate for the use of their content. The New Media Alliance is pushing for its approval.