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India is considering new obligations for Big Tech companies such as Google and Facebook to pay publishers for the news content they reuse on their platform.
The copyright issue
The first is an intellectual property perspective, which has been taken by the European Union Digital Single Market Copyright Directive. The directive, drawn up in 2019, requires so-called platforms above a certain user base (5 million active users) to pay news publishers, journalists, authors and even performers and musicians, remuneration for using their work.
A key aspect is the Copyright Directive’s Article 17, which lays down the need for prior authorization before copyright protected content is used by digital companies. But it is Article 15 that makes it mandatory for remuneration to publisher.
There allow press publishers and original authors in EU member states to claim revenue from online internet companies, search engines and news aggregators for the use of press publications for two years from the date of online publishing.
An explanation note offered by the European Commission suggests that, like the Australian law, creating special rights for news publishers and journalists was deemed crucial, even though the approach was through a larger copyright perspective.
“By ensuring the sustainability of the press sector, the new right fosters plural, independent and high-quality media, which are essential for the freedom of expression and the right to information in our democratic society,” the note said.
Since it is a directive, EU member countries need to transpose it into their own legal framework. France was among the first to do so. Germany followed suit in 2020, as did the Netherlands (although the Dutch law is seen to contain some loopholes). In 2021, Italy and Spain too translated the directive into their own laws.
The move at first triggered attempts by companies to resist it. Google France, for instance, stopped carrying news from French publishers before the country’s competition regulator stepped in and slapped a $592 million fine (and an additional $900K for every day that it did not strike a remuneration deal).
In public interest
A stronger position was taken in March 2021, adopted the News Media and Digital Platforms Mandatory Bargaining Code. The law is means to help local news publishers if tech companies reuse any content that “reports, investigates or explains issues or events of public significance”.
The move triggered a very public spat, most notably the social media company blocked users from posting links to any news website. The spat came to an end after the government agreed to let Facebook demonstrate that it had paid local publishers adequately.
“Google have in the last month done a deal with another 24 small publishers, so that they have now, in effect, done deals with all eligible media companies. A great result,” he said, adding the $200 million per annum “is flowing to media companies and many more journalists are being hired”.
Similarly, Canada is considering a legislation known as the Online News Act, which was introduced in April this year. The law, if enacted in its current shape, will force digital media companies to negotiate deals with Canadian media outlets for reusing their content, aiming to address the disparity in advertising market.
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