Microsoft: News is not free, Facebook
US giant backs Australia-style laws to make tech firms pay
MICROSOFT has backed demands for Australian-style laws in Europe that would force technology giants to pay for using journalism.
In a move that ratchets up pressure on its rivals Google and Facebook, the US giant revealed it was working with publishers to develop a system that ensured internet ‘gatekeepers’ paid for news featured on their platforms.
This will ‘take inspiration’ from the system being championed by Australia, which is forcing tech businesses to license content from news companies. Crucially, the Australian model includes a binding arbitration system to resolve disputes over what is a ‘fair price’ for news.
This means tech firms cannot just walk away if no agreement is reached – a measure that is vigorously opposed by Facebook and Google.
Microsoft, which owns the Bing internet search engine, and European publishers argue it is essential to address a potential power imbalance between the ‘dominant’ internet giants and media organisations of all sizes.
The announcement comes after Facebook banned Australian news content from its platform in anticipation of the new rules, prompting an international backlash.
The UK Government has expressed alarm over the decision, with Culture Secretary Oliver Dowden set to meet Facebook chiefs to discuss the issue.
Yesterday Microsoft vice president Casper Klynge said: ‘Access to fresh, broad and deep Press coverage is critical to the success of our democracies.
‘Our commitment to preserving and promoting journalism isn’t new. In October 2020, we launched a new initiative to invest in and support local media and, through Microsoft News, we have been sharing a large portion of revenue with Press publishers. This initiative is a logical next step.’
Christian Van Thillo, chairman of the European Publishers Council, added: ‘We welcome Microsoft’s recognition of the value that our content brings to the core businesses of search engines and social networks because this is where Google and Facebook generate the vast majority of their revenues. It is crucial that our regulators recognise this key point. All publishers should get an agreement – no one should be left out.’
Fernando de Yarza, president of News Media Europe, added: ‘We look forward to working with Microsoft and others on a solution that allows for a healthy and diverse online news media ecosystem.’ DMG Media, owner of the Daily Mail and Mail on Sunday, is a member of the European Publishers Council and News Media Europe.
The UK Government is currently pressing ahead with plans to improve digital competition and ensure major players such as Google and Facebook ‘cannot exploit dominant market positions’. Ministers have vowed to introduce a statutory code of conduct that will ‘support the sustainability’ of the news publishing industry. Facebook has already struck licensing deals with British news outlets, including the Mail, ahead of the proposed crackdown.
A Facebook spokesman said: ‘The UK has taken a very different approach to Australia.
‘We are now paying tens of millions of pounds to national and local outlets in the UK to be part of Facebook News.’