News publishers face ‘existential threat’ from Facebook and Google

A “FUNDAMENTAL imbalance of power” between news publishers and platforms such as Facebook and Google must be fixed to save journalism from an “existential threat”, a Lords report has warned.

The Government has been told to act on the “dysfunctional” online ads market which is crippling news organisations, particularly after increased strain caused by the pandemic.

Publishers rely increasingly on online revenue but Facebook and Google profit from adverts alongside news organisations’ content, which neither pays for the right to carry at present, the House of Lords Communications and Digital Committee said.

Peers want the proposed Digital Markets Unit (DMU) to be set up urgently to regulate online platforms and a new code of conduct.

They also recommend the introduction of a compulsory news bargaining code – similar to an Australian model – in its Online Harms Bill, to force platforms to pay publishers for the right to use content.

“Online advertising is crucial to news publishers’ success, but there’s a fundamental imbalance of power between them and platforms such as Facebook and Google whose overwhelming market dominance means they dictate the terms on which they use publishers’ content, including whether and how much they pay for it,” said Lord Gilbert of Panteg, chairman of the Communications and Digital Committee.

“Publishers need platforms far more than the platforms need them.”