Are tech giants unfairly profiting from news shared on their platforms? New Zealand certainly thinks so. The country is currently considering a law that will force companies like Alphabet Inc, which owns Google, and Meta Platforms Inc, which owns Facebook and Instagram, to pay media organizations for information that appears on those platforms.
New Zealand Broadcasting Minister Willie Jackson has said the country will introduce a law that will force tech giants to pay the country’s media companies for local news content, according to a report by the agency. Press. Reuters.
Jackson said in a statement Sunday that the legislation would be modeled after similar laws in Australia and Canada. “It’s not fair that big digital platforms like Google and Meta can host and share local news for free. It costs to produce the information, and it is only justice they pay,” he said, according to a report published in The Wall Street Journal.
Also read: Meta threatens to ban news on its platforms if US Congress passes new journalism bill
Why ask tech giants to pay?
This is a debate that has been going on for a while. News editors believe Facebook and Google take advantage of news that appears on their feeds, as it attracts multiple users to the platforms.
According to a Pew Research Center survey conducted between July 26 and August 8, 2021, approximately 48% of American adults get their news from social media. A third of American adults (31%) say they regularly receive information on Facebook, while about one in five Americans (22%) say they regularly receive information on YouTube. Twitter and Instagram are regular news sources for 13% and 11% of Americans, respectively.
Although global data is not available, this survey gives us insight into users’ news consumption habits.
Social media platforms stand to gain. Many believe they get clicks, engagement, and even revenue from content posted by media organizations.
However, it is news agencies that are suffering, especially smaller newspapers, as more advertising is delivered online. Many news outlets are struggling to negotiate business deals with tech companies, according to a report in The Wall Street Journal said.
What is New Zealand’s plan?
New Zealand hopes its legislation, which will force tech companies to pay media outlets, will incentivize digital platforms to strike deals with local media, according to Reuters.
“New Zealand news media, particularly smaller regional and community newspapers, are struggling to remain financially viable as more and more advertising moves online,” Jackson said. Reuters as told. “It’s critical that those who benefit from their news content actually pay for it.”
The new legislation will be put to a vote in parliament where the majority of the ruling Labor Party is expected to pass it.
Similar to laws in Australia and Canada, New Zealand’s proposal will allow Google and Facebook to negotiate with publishers without any government interference. However, in case the two parties fail to reach an agreement, the law will set up a negotiation process, which will be mandatory, reports WSJ.
New Zealand said its legislation will be similar to that of Australia and Canada. AFP
What were the reactions to the proposal?
The tech giants feel misunderstood and claimed to have reached out to media companies and made deals with them even before news of a possible law surfaced.
In New Zealand, Facebook has commercial agreements with three publishers. NZME Ltd, which owns newspapers in the country, said it struck its independent deals with Google and Facebook earlier in the year but still supports the government’s proposal. “We support government legislation as it ensures the future sustainability of our local news media and contributes to a healthy media ecosystem,” said NZME chief executive Michael Boggs. WSJ.
According to Meta regional policy director Mia Garlick, the proposal misunderstands the relationship between Facebook and news, noting that publishers are the ones who control if and how their content appears on the platform, the report said.
Has the law helped the Australian media?
In February 2021, Australia passed a law requiring Facebook and Google to pay local media and publishers to link their content on news feeds or in search results.
Called the Mandatory Code of Negotiation for News Media and Digital Platforms, it was introduced to “ensure that news media companies are fairly compensated for the content they generate, helping to support journalism of interest public in Australia”.
Before the introduction of the law, Google threatens to shut down its search engine from Australia. In February, Facebook blocked the news on his platform as the bill was being debated. It would also have cut positions from the health service, emergency and crisis services and the Australian Bureau of Meteorology.
“They may be changing the world, but that doesn’t mean they have to lead it. We will not be intimidated by this act of bullying by BigTech, seeking to pressure Parliament as it votes on our important news media trading code…,” said Scott Morrison, then Premier Australian minister.
It’s been over a year since the law came into force and Australia says it’s working. Since the News Media Code of Negotiations took effect, tech companies have signed more than 30 agreements with media outlets paying them for content that generates clicks and ad dollars, according to a Treasury Department report from the country.
What about Canada?
In April, Canada introduced the Online News Act, legislation that can force platforms like Facebook and Google to pay news publishers for their content. The law establishes rules that require platforms to negotiate deals with news outlets.
“Tech companies like Facebook profit from the work of news outlets and therefore must have the ability to negotiate fair deals with them,” Pablo Rodrigues, Canada’s Heritage Minister, said in a statement.
In October, Facebook warned that it could block sharing of news content on its platform in Canada due to legislation.
“We believe the Online News Act distorts the relationship between platforms and news publishers, and we call on the government to review its approach,” said Marc Dinsdale, head of media partnerships at Meta Canada, in a blog post. adverse legislation based on false assumptions that challenge the logic of how Facebook operates, we believe it is important to be transparent about the possibility that we may be forced to reconsider allowing news content to be shared in Canada .
The Canadian government had said it had ‘constructive conversations’ with Facebook, reports Reuters. “All we ask of tech giants like Facebook is to negotiate fair deals with the media when they profit from their work,” Rodriguez said.
With contributions from agencies
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