A major battle looms over an EU plan that would force internet aggregators to pay newspapers
A major battle is brewing in Brussels over an EU reform plan that would force internet aggregators such as Google News to pay newspapers for displaying snippets of their articles online.
Google is furious at the reform idea, but powerful publishers including Axel Springer in Germany and Rupert Murdoch’s Newscorp in the UK, affirm that a tax is the only hope to save a news industry starved of revenue.
The fight, which will play out for the rest of 2017, is the latest row straining ties between Google and the EU, which slapped the Silicon Valley giant with a €2.4bn fine over unfair competition in June.
The proliferation of free news on the internet has brought the newspaper industry to its knees, with many consumers unwilling to pay for online service, preferring zero-cost platforms such as Google News or Facebook.
“Unauthorised internet use of media content” by aggregators and search engines “is threatening citizens’ sustainable access to quality news content”, said the European Alliance of News Agencies, of which AFP is a member. “It is therefore crucial that neighbouring rights be created for news agencies and other publishers, covering all activity” on the web.
Neighbouring rights is EUspeak for the obligation for online platforms such as Google or Facebook to pay for showing short quotes from copyrighted content, such as news articles.
The so-called “snippet tax” proposal is only one of several components of an EU draft law intended to update European copyright law in the digital age.
The “snippet tax” is largely based on a tax introduced in Spain that critics said harmed publishers when Google decided to close down its news aggregator in response. A similar law in Germany led to publishers give Google open access to their content following a steep drop in online traffic.
Based on these examples, the Computer and Communications Industry Association, whose members include Google and Yahoo, called the idea “illfounded, controversial and detrimental to all players”.
In a 2016 blog post, Google said: “It would hurt anyone who writes, reads or shares the news — including the many European start-ups working with the news sector to build sustainable business models online.”
The two camps are now battling it out at the European Parliament and the EU Council.
For now, France, Spain and Germany have declared their support for the tax while Ireland, the UK and the Nordic countries are against it.