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Home Explainers

Google and Facebook Can be Compelled to Pay News Outlets for using their News Stories

Under new laws proposed by the Government and pointers from Queen's Speech, Tech giants may be forced to pay media outlets for using their stories.

Sakshi Gupta by Sakshi Gupta
May 13, 2022
in Explainers
Reading Time: 2 mins read
Google and Facebook Can be Compelled to Pay News Outlets for using their News Stories
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As per a new law proposed by the Government,  the Tech giants like Google and Facebook can be compelled to pay Media outlets for using their news stories. The Queen’s Speech includes the Draft for Digital Markets, Competition, and Consumer Bill. It outlines a proposed plan for social media platforms to treat all businesses equally and encourage them to make payment deals with News Organizations. 

Google and Facebook Can be Compelled to Pay News Outlets for using their News Stories
Image Source: theguardian

As per the plans introduced in Australia, the platforms will be asked to negotiate payment deals with news organizations. If they cannot succeed in negotiations, an independent mediator would set an adequate price.

The concept was initiated by Culture Secretary Nadine Dorries. This comes from the increasing concerns of the tech companies that are directing online advertising to the disadvantage of consumers and businesses. 

As per a new proposal, the Digital Markets Unit (DMU) created last year will be able to target a small group of very powerful digital companies. They can be giants in social media and online search. They would be asked to follow legal and enforceable rules and obligations to make sure that they don’t abuse their position by hampering the consumers and businesses. 

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The DMU will also get powers to proactively address the reasons for intense competition in the digital market. Dories further told her officials that the DMU must be given powers to direct just working terms between publishers and platforms. It can be done by binding arbitration, and it must be given the power to act effectively when they know that a platform has not made a fair deal for the use of publisher content.

Google and Facebook Can be Compelled to Pay News Outlets for using their News Stories
Image Source: theguardian

Google and Facebook take about four-fifths of the £14 billion that goes into Digital Advertising in the UK as per a 2019 report. The national and local Newspapers take less than 4%. Google charges between 30 to 40% more on search advertising on desktop and mobile devices. It is more than Bing which is one of its biggest competitors. 

Also, the DMU would be given powers to enforce fines on online companies and prevent any consumer or firms from unfair treatment. Moreover, it will have the power to give its small competitors access to its data. 

Facebook has put forward an agreement that says it is already lending support to UK publishers. It has been paying the national and local outlets’ money to be an integral part of Facebook News and contribute to the Community News Project. It gives money to 80 trainee reporters in newsrooms across the country.

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