Microsoft is urging the US to pass a version of a proposed Australian law that would force Google and Facebook to pay news publishers for their stories, arguing that it will “strengthen democracy” and “support a free press”.
The law requires Google and Facebook to pay a fee yet to be set for including links to news articles on their platforms. Critics say it is unfair that tech giants have included them for free, increasing their own advertising revenue in the process.
The bill, which is currently before an Australian parliamentary committee, is being closely watched by media officials around the world as a possible model for other countries, as media outlets have been particularly hard hit by the pandemic over the past year.
The Australian bill is being closely followed by media representatives around the world, who see it as a possible model for other countries, as media outlets have been particularly hard hit by the pandemic over the past year.
The Trump administration has opposed the Australian proposal, saying it has penalized two large US companies. But in a blog post on 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 that technicians get from this content?” Smith wrote. “Australia’s proposal will reduce the negotiation imbalance that currently favors technicians and help increase opportunities for independent journalism. But this is a defining issue of our time, which is at the heart of our democratic freedoms. “
The data tracking company eMarketer said that Google and Facebook this year will order over 50% of the total digital advertising dollars spent in the United States, attracting over 90 billion dollars between them. Google is expected to attract $ 50.2 billion or about 29.3 percent of the total digital advertising market in the US, while Facebook will account for $ 40.76 billion or 23.8 percent of the market in 2021.
Google has been furious with Australian law. If it passes, the Silicon Valley giant has threatened to shut down the search engine in Australia completely. Facebook has said it will remain in Australia, but could restrict users’ ability to select articles on its sites.
Microsoft has an important aspect at stake, noting that its own search engine known as Bing, which currently has only 5% of search activity, would be happy to step into the breach.
In France, Reuters reported on Friday that, after years of legal quarrels, Google had 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 stayed out of the deal considered it unfair and said Google had deliberately split the publishing industry to avoid a 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 presentation as part of a $ 1 billion spending program publishers around the world over the next three years. . News Corp., the father of The Post and editor of the Times of London, is not attending.
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 it expanded in the United States.
“This is an extremely important step towards maintaining high quality journalism, not only 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 US, competition law and the preservation of journalism, which was introduced in the House and Senate, would give news publishers the ability to overcome antitrust barriers and bargain collectively with technology platforms to compensate for the use of their content. The New Media Alliance is pushing for a move.