Microsoft is urging the US to pass a version of a proposed Australian law that would force Google and Facebook to pay news outlets for their stories, arguing that it would “strengthen democracy” and “support a free press” .
The legislation calls on Google and Facebook to pay a yet to be determined fee for including links to news articles on their platforms. Critics say it’s unfair for the tech giants to source them for free, boosting their own ad revenue.
The bill, currently pending before an Aussie parliamentary committee, is being closely watched by media executives around the world as a potential model for other countries as media outfits have been hit particularly hard by the pandemic in the past year .
The bill in Australia is being closely monitored by media executives around the world, who see it as a potential model for other countries, as media outfits have been hit particularly hard by the pandemic in the past year.
The Trump administration had objected to the Australian proposal, saying it penalized two major US companies. But in a blog post Thursday, Microsoft president and chief legal officer Brad Smith said the Biden administration should not fight Australia’s proposed law, but ‘copy it.
“What’s wrong with compensating independent news organizations for the benefits the tech gatekeepers get from this content?” Smith wrote. Australia’s proposal will reduce the bargaining imbalance currently in favor of technical gatekeepers and increase opportunities for independent journalism. But this is a defining issue of our time, which goes to the heart of our democratic freedoms. “
Data tracking company eMarketer said Google and Facebook will manage more than 50 percent of all digital advertising dollars in the United States this year, bringing in more than $ 90 billion together. Google is expected to bring in $ 50.2 billion or about 29.3 percent of the total US digital advertising market, while Facebook will make up $ 40.76 billion or 23.8 percent of the market by 2021.
Google lobbies furiously against Australian law. If it succeeds, the Silicon Valley giant has threatened to shut down its search engine in Australia altogether. Facebook has said it will remain in Australia but may limit users’ ability to select articles on its sites.
Microsoft has skin in the game, noting that its own search engine known as Bing, which currently has only 5 percent of search activity, would be happy to get in on the breach.
In France, Reuters reported Friday that after years of legal bickering, Google has agreed to a three-year deal that pays $ 76 million to a group of publishers, including the country’s largest newspaper, Le Monde. But publishers left out of the deal felt it was unfair, saying Google intentionally split the publishing industry to avoid a larger payout.
In the UK, Google said this week it reached an agreement with 120 publishers, including Reuters and the Financial Times, to pay for the content of the new Google News Showcase as part of a program to spend $ 1 billion over the next three years to publishers worldwide. . News Corp., the parent company 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 makes News Corp. applauded developments in Australia and said he hopes it will expand in the US.
“This is a hugely important step towards preserving quality journalism not only in Australia but around the world.”
He called the Australian negotiating code “a model of historical importance – akin 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 & Preservation Act, enacted in the House of Representatives and the Senate, would allow news outlets to overcome antitrust hurdles and jointly negotiate compensation with the tech platforms for the use of their content. The New Media Alliance is pushing for passage.