The likes of Google and Facebook will soon have to compensate news outlets for utilising their content. The government has given indications that it is considering requiring major technology companies in the content sector, such as Google, Meta, Microsoft, Apple, Twitter, and Amazon, to pay royalties to Indian newspapers and digital news publishers for the use of their original material. Countries including Australia, Canada, France, and Spain are among those that have embraced the approach.
The government is considering changing the IT laws to accommodate the developments, as stated by the Minister of State for IT and Electronics, Rajeev Chandrasekhar. According to TOI, Chandrasekhar said, “the market influence on digital advertising that is now being wielded by the Big Tech giants is being carefully investigated in the light of new legalisations and laws.”
In addition, as Chandrashekhar pointed out, the expansion of social media and digital platforms in India has not benefited the original content providers because they do not share the earnings with them. Having no bargaining power at all, the news media wants this issue addressed legislatively. This is a major concern of ours,” he said. Last year, Chandrasekhar stated that it had no intentions to require major technology businesses to pay for local news coverage.
The Australian government is the first in the world to require internet giants to foot the bill for original programming.
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Australia’s new media legislation mandates that major digital corporations fund local news outlets. Due to a disagreement with the Australian government about content licencing fees, Facebook had already begun blocking news articles in Australia shortly before the new law went into effect. Facebook’s decision to block news information in Australia was criticised as “arrogant” and “disappointing” by Australian Prime Minister Scott Morrison.
Public-interest journalism in Australia will be supported thanks to the code, according to a joint statement from Communications Minister Paul Fletcher and Treasurer Josh Frydenberg. Also, “progress by both Google and, more recently, Facebook in striking commercial deals with Australian news media organisations” was cited as an additional reason for the government’s satisfaction.
Since Facebook and the Australian government had a public spat over a bill requiring the internet giant to pay the news publishers for utilising their material, the social media site has disabled access to news articles for Australian users.
Canada has also suggested legislation to regulate the distribution of IT industry profits.
The Canadian government proposed a bill in May 2022 to ensure digital news publishers receive a fair cut of advertising money from social media giants like Google and Facebook.