Belling the cat online ad revenues can help pay for journalism australia tells google facebook to share

Belling the cat online ad revenues can help pay for journalism australia tells google facebook to share

Indian government must take note of an Australian code that will force digital platforms Google and Facebook to share advertising revenues earned from news content with local news producers. The Australian government has taken note that while local media companies are struggling to stay afloat, Google and Facebook have raked in the moolah. Operating as monopolies, and behaving as if they do favours to news producers for displaying their content while incurring zero cost for news gathering, multinational tech giants can only be reined in with firm government regulations.

The Australian code envisages a time-bound process of bargaining/ negotiation between digital platforms and news producers (individually or collectively) – followed by mediation and arbitration, if necessary. When matters reach arbitration, the arbitrator will have to gauge direct (revenues) and indirect (customer acquisition/ loyalty) benefits accruing to digital platforms from displaying local news, costs borne by news producers for journalistic operations, and whether the final award places “undue” burden on a digital platform’s commercial interests.

This is an even-handed approach. It looks as if Australia has succeeded in belling the cat, when other governments don’t regulate US tech companies for fear of incurring the wrath of the US government. Other countries, including India, should follow in Australia’s footsteps. The tide is turning even in the US, evident from US Congress – which has been largely forbearing despite mounting anti-trust evidence – grilling big tech CEOs last week. Their questions, ranging from anti-competitive misuse of data to stifling of competitors, echo many Indian concerns. A committee of experts on non-personal data governance headed by Infosys co-founder Kris Gopalakrishnan has flagged the rise of data monopolies with tech giants on one side ranged against Indian businesses, citizens, startups and even the government.

This phenomenon is already dogging the crisis-stricken media industry. Opaque algorithms and absence of regulations mandating data sharing with news partners leaves local media outlets, who are domestic job and wealth generators unlike digital platforms with their disproportionately poor local hiring, at a distinct disadvantage. Journalism also performs the critical task of strengthening democracy. If newspapers turn unviable and close down, governance and information dissemination will suffer. The corrupt will be emboldened as journalists will not be around to report on crumbling infrastructure, civic issues, law and order and political or bureaucratic malpractices. It is in India’s interest to closely examine the Australian model.