What is the news: The Indian government is considering giving tech companies like Google, Facebook, Microsoft, and Twitter a portion of their revenue to access news content to Indian newspapers and digital news publishers. Times of India (TOI) Reported on 16 July.
Why this matters: Google and other tech companies scrape news from publishers’ websites and display them to users, resulting in users not needing to visit the source of the news. Since users do not visit news publishers’ websites, these publishers are deprived of advertising revenue, which is the primary source of income for most publishers. The Competition Commission of India is currently investigating Google following a complaint from the Digital News Publishers Association (DNPA), alleging that the company leverages its members’ news content in search results, but does not receive them from fair advertising revenue. deprives. For this reason, some countries such as Australia, France and Spain have mandated that tech companies pay news publishers for their content, and other countries such as Canada and New Zealand are exploring similar legislation.
“News publishers have no negotiating advantage, and this needs to be dealt with legislatively. This is an important issue for us.” — Minister of State for IT and Electronics Rajiv Chandrashekhar to TOI.
How it will be implemented: Chandrashekhar told TOI that this would be implemented through regulatory interventions, which could happen as part of amendments to existing IT laws. Chandrashekhar commented, “The market power over digital advertising that is currently being exercised by the Big Tech giants, which puts Indian media companies at a disadvantage, is an issue that needs to be seriously considered under new legalization and regulations. An investigation is being conducted in this regard.”
Google News Showcase: Google launched News Showcase in India and some other parts of the world in 2020, as part of which the tech giant pays news publishers to feature their content within Google News. But the program only applies to select publishers and on terms set by the tech giant, unlike Australia, where all publishers can claim compensation based on a legal code.