Microsoft and EU publishers push for tech firms to make Australia-style news payments

The US tech giant and four EU lobbying groups are planning to ‘mandate payments’ for use of news content from online ‘gatekeepers with dominant market power’
The move comes as Australia nears passing a law requiring Facebook and Google to negotiate with news outlets for payment for their content or face fines

Microsoft

Agencies

Published: 11:03pm, 22 Feb 2021

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Microsoft is teaming up with European publishers to push for a system to make big tech platforms pay for news, raising the stakes in the brewing battle over whether Google and Facebook should pay for journalism.

The US tech giant and four big European Union (EU) news industry lobbying groups unveiled their plan on Monday to work together to come up with a solution to “mandate payments” for use of news content from online “gatekeepers with dominant market power”.

They said they will “take inspiration” from proposed legislation in Australia to force tech platforms to share revenue with news companies and which includes an arbitration system to resolve disputes over a fair price for news.

Facebook’s spat with Australia watched with interest in China

Facebook last week blocked Australians from accessing and sharing news on its platform, in a surprise response to the government’s proposals that sparked a big public backlash.

Britain on Monday said it was “concerned” about the issue, with British culture minister to meet Facebook this week to raise its view, Prime Minister Boris Johnson’s spokesman said on Monday.

“He is expected to meet Facebook this week,” the spokesman said, declining to give a specific date for the meeting.

“We’re concerned about the access to news being restricted in Australia and we are setting up the Digital Markets Unit as part of the Competition and Markets Authority from April and we will consult on its function later this year,” he said.

Canada and Britain have expressed interest in following Australia’s footsteps over the content law. Photo: Reuters

Australia on Monday took its row with Facebook over new media regulations to a new level by cancelling advertising campaigns it had planned to run on the social media portal.

Finance Minister Simon Birmingham told broadcaster Radio National the government would take back all ads it had planned to run on the website.

The move could cost Facebook up to A$10.5 million (US$8.3 million) per year, broadcaster ABC reported.

Birmingham said Facebook was behaving “inappropriately, seeking to exert power or influence over our democratic systems”.

“We will be standing as I say firm on the legislation and looking at all those advertising points,” he said.

As Australia takes on Facebook, can it get the rest of the world on its side?

The News Media Bargaining Code, a legislative proposal introduced into Australia’s parliament in December, would require Facebook and Google to negotiate with news outlets for payment for their content or face fines.

Other countries including Canada and Britain have already expressed interest in taking some sort of similar action.

“The bill as it stands … meets the right balance,” Birmingham told Australian Broadcasting Corp Radio.

A Facebook representative declined to comment on Monday on the legislation, which passed the lower house last week and has majority support in the Senate.

A final vote after the so-called third reading of the bill is expected on Tuesday.

Reporting by Reuters, AP, dpa

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