Impact on India Media Industry over Google’s payment deal with Australia for News

Google facebook to pay for news

Does this mean Australia has belled the cat…. In a way yes.  Though Google has come into an understanding with France.  It was Australia’s deal that has remained as an eye-opener or indeed a groundbreaker of legislation. Australia’s Seven West Media is supposed to have signed a deal with Google under which Google has to pay for the inclusion of news in its search pages. It’s all started with the Competition and Consumer Commission (ACCC) of Australia, stressing upon media companies to bargain monitory benefits for their news feed featuring on tech giants’ spaces. A large number of internet user get their daily dose of news from these tech giants feeds instead of visiting the media companies’ websites.

Media companies were under burden the world over and have been complaining for years that they were not fairly remunerated for their content that generated ad revenue for platforms like Google and Facebook; but the tech companies kept largely ignored.  But Google’s rush to pay up in Australia only exposed how a little threat could sharply alter the behaviour of the global tech. The question largely remains how far governments can go to compel the tech platforms to pay for news.

In the wake of the situation Indian Newspaper society has urged to pass on 85 per cent of the advertising revenue and that the technology giant to ensure more transparency in revenue reports provided to the publishers. The amount the Google or Facebook has to pay will depend on individual companies deal; either it could be pay per click or a fee per month.

This move is absolutely necessary not just to protect traditional media companies from dying due to technological disruption but to give a level playing ground as the content generated and published by newspapers come up with a considerable expense. As it employs thousands of journalists on the ground at considerable expense for gathering and verifying information. 

With the diminishing share of advertising pie with every passing day will this effort bring the needed respite for the fund starved parched newspaper industry. Let’s wait and watch.

 May this be the beginning of a broader reckoning….

Will Google and Facebook pay?

The US has asked Australia to scrap the proposal to make Facebook  and  Google to pay for news sourced from local media outlets. Further it has asked Australia to study the markets further to develop a voluntary code if it’s appropriate.

But the proposed law formulated in Australia has the political support to make Google and Facebook get into price arbitration if the commercial agreement with Australian media has not arrived. Though the US has raised its concerns on the harmful outcome if the consensus was not reached. Australia seems not to be thwarted in spite of lobbying efforts.

The Australian government upped their antenna post the conclusion of their investigations that the tech giants market power in the media industry will lead to the situation that may pose threat to the country’s democracy. The progression of events pointing toward proceeding with mandatory code.

Nevertheless, Google and Facebook may be limiting their offering to Australia.  As of now for every A$100 of online advertising spend, A$53 goes to Google, A$28 to Facebook and A$19 to other media companies in Australia.