Search engines paying for news: Microsoft backs Australia model

SAN FRANCISCO: Microsoft on Thursday lobbied for other countries to follow Australia’s lead in calling for news outlets to be paid for stories published online, a move opposed by Facebook and Google.

Microsoft last week offered to fill the void if rival Google follows through on a threat to turn off its search engine in Australia over the plan.

Microsoft president Brad Smith said in a statement the company fully supports proposed legislation in Australia that would force Google and Facebook to compensate media for their journalism.

“This has made for an unusual split within the tech sector, and we’ve heard from people asking whether Microsoft would support a similar proposal in the United States, Canada, the European Union, and other countries,” Smith said in a blog post. “The short answer is yes.” Facebook and Google have both threatened to block key services in Australia if the rules, now before parliament, become law as written.

The situation raises the question of whether US President Joe Biden will back away from his predecessor’s objection to the proposal in Australia.

Smith couched Microsoft’s support as a way to promote a healthy news industry and democratic speech, but this could also help Microsoft press an advantage in markets where it has failed to make much headway — Bing has less than 5% share in Australia, where Google is dominant.

Smith argued that internet platforms that have not previously compensated news agencies should now step up to revive independent journalism that “goes to the heart of our democratic freedoms”.

“The United States should not object to a creative Australian proposal that strengthens democracy by requiring tech companies to support a free press,” Smith said.

Under the proposed News Media Bargaining Code, Google and Facebook would be required to negotiate payments to individual news organisations for using their content.

If agreement cannot be reached on payments, the issue would go to so-called “final offer” arbitration where each side proposes a compensation amount and the arbiter chooses one or the other. Google and Facebook have said the scheme would undermine their business models and the very functioning of the internet.