The digital landscape has been in constant flux, and this is particularly true for the relationship between news publishers and internet platforms. Recently, Canada introduced a bill aimed at regulating digital news intermediaries like Google and Facebook in order to ensure they pay news publishers for the usage of their content. This move is seen as an attempt to increase fairness in the Canadian digital news marketplace and strengthen its sustainability.
Purpose of the Bill
The proposed bill is expected to generate four key outcomes. Firstly, it aims to establish a framework that fosters fair business relationships between digital platforms and news outlets. Secondly, it seeks to ensure the sustainability of the news ecosystem. Thirdly, it strives to uphold the independence of the press. Lastly, the legislation wishes to maintain diversity within the news landscape.
The Nature of Publisher-Platform Relationships
The relationship between news publishers and these internet giants has, until recently, primarily revolved around how the former can utilize various tools and strategies to enhance their reach provided by the latter. Companies like Google and Facebook have been instrumental in driving much of the traffic for many traditional news publishers. However, the platforms tend to derive most of the monetary gains from this arrangement, leaving the publishers grappling with potential financial difficulties. Furthermore, publishers are constantly having to adapt to changes in the platform algorithm, which could result in them suddenly losing a considerable number of readers.
Implications for India
The Canadian legislation could greatly influence India’s stance on ensuring fair revenue-sharing systems for its news publishers. Despite stating in December 2021 that it had no intentions of forcing tech behemoths like Facebook and Google to pay local publishers for news content, India has since launched investigations into Google following complaints lodged by the Digital News Publishers’ Association (DNPA).
With over 800 million people now online and technology constituting almost a fifth of its overall output, India stands poised to become one of the world’s most internet-enabled nations. However, unregulated social and digital media could undermine India’s credibility and threaten its democratic fabric. To tackle these challenges, India will need to regulate social media more effectively and modernize its laws and institutions.
Global Status
The issue of compensation for news content usage is not limited to Canada and India. Google and Facebook are facing legal challenges worldwide, including antitrust lawsuits from both regulators and publishers. Several countries and regions, including Australia, the UK, the European Union, and France, have either enacted or are considering enforcing laws to ensure a fair revenue-sharing model. These tech giants appear to be in a desperate struggle to maintain their purportedly monopolistic systems, which allow them to rake in substantial revenues.
