World tells tech giants to pay up for news

News publishers in Europe, the US and Britain are pushing for their own versions of a news media ­bargaining code.

Britain's Culture Secretary Oliver Dowden. Picture: AFP

News publishers in Europe, the US and Britain are pushing for their own versions of a news media ­bargaining code, with Australia’s protracted brawl with the tech ­giants expanding to multiple fronts overseas.

Major publishing groups in the EU have teamed with Microsoft to call for the Digital Single Market Copyright Directive — which comes into force in June — to be expanded to include a law like Australia’s media bargaining code legislation.

“The experiences in France and Australia have shown us that there’s a real need for a binding ­instrument to address inherent imbalances in bargaining power with gatekeepers, which undermine the potential of Europe’s press sector,” Fernando de Yarza, president of News Media Europe, said. “We look forward to working with Microsoft and others on a ­solution that allows for a healthy and diverse online news media ecosystem.”

The media bargaining code will likely pass as early as Wednesday, with Facebook announcing on Tuesday it would allow news on its platform again “in coming days”. The concession made headlines globally and stoked optimism that other markets could follow Australia‘s lead.

Treasurer Josh Frydenberg said on Tuesday “the eyes of the world” were on Australia’s landmark reforms.

Jean-Pierre de Kerraoul, president of the European Newspaper Publishers Association, said an EU bargaining code should include arbitration provisions to ensure fair agreements are negotiated.

“The internet and social media have not been kind to the free press, with most outlets hit hard,” Mr de Kerraoul said.

Europe’s competition regulator has also strongly backed Australia’s actions. “On Australia, I really feel that it’s a pity the way this platform (Facebook) has behaved to protest against certain actions,” EU internal market commissioner Thierry Breton said.

Canada has already flagged it will follow Australia’s lead and force the likes of Google and Facebook to pay for news, and there are growing calls for the US to do the same. “There is a worldwide movement to renegotiate the terms of trade for news content, similar to what … TV did with retransmission in the 1990s,” CEO of the US-based News Media Alliance, David Chavern, said.

“The larger publishers currently have some capacity to get voluntary, one-off deals, but those arrangements are underpriced and leave out lots of small and local publishers. The only equitable answer is mandatory bargaining codes backed by law.

“Australia has taken a true leadership position that is already influencing the debate in the US and Europe. We expect the US congress to take action in support of news publishers and, while it may not be identical to the Australian approach, it will accelerate us towards a more sustainable market for news content.”

Britain’s Culture Secretary is meeting with Facebook this week to raise London’s concerns with Facebook’s Australian news ban.

Faure Walker, chairman of News Media UK, said Facebook’s ban on news in Australia during a pandemic was a classic example of a monopoly power being the “schoolyard bully”, trying to protect its dominant position with scant regard for those it serves.

“The recent deals struck ­between Google in Australia and news publishers are a welcome ­acknowledgment of the principle that independent journalism has to be paid for,” Mr Walker said.