As the cost of publishing content is rising, pressure is mounting on tech giants to pay publishers and content creators for using digital content. On its part, Google argues that it sells ads and not content. Facebook has responded to the calls by switching off the content display on its website, according to BBC News.
The issue
For decades, tech giants like Google and Facebook have freely distributed publishers’ and creators’ content without paying for it. Companies, including Apple, Inc., are charging content creators and publishers for content displayed on their platforms.
However, as the demand for digital content continues to rise, the tech giants are under pressure to pay for content. Some business experts believe that it is fair for Google and Facebook alongside their fellow tech giants to pay publishers for quality news.
Those in support of this idea argue that added-value journalism is extremely expensive. If Google and Facebook continue to use content for free, publishers and content creators will be at risk of disappearing or devaluation. Sharing revenues with content posters will help publishers to monetize their content.
A financial technology entrepreneur, Dr. Richard Smith, noted that “Content creators have done so much for Google. Unfortunately, they are apparently in danger of extinction. If Google doesn’t do a better job of sharing the gains from its technology with the actual content creators, the risk may be great.”
Facebook and Google Respond
In April 2020, French Competition Authority ordered Google to negotiate with news publishers and content creators. The regulation came in response to publishers’ demand for shared revenues with Google.
However, the company has attacked the proposals and, reportedly declined to pay content creators. Google argued that its Search and YouTube services could be compromised if new rules are brought through.
Google has received similar requests from Spanish, Indian, and Australian lawmakers. Earlier in 2019, the Spanish government imposed a mandatory policy that required Google to pay content publishers.
In retaliation, Google moved ahead to stop its news services (Google News) from running in Spain. In a statement released in late 2019, Google said
We [Google] sell ads, not search results, and every ad on Google is clearly marked. That’s also why we don’t pay publishers when people click on their links in a search result.”
As reported by BBC News
Facebook has also responded in a similar manner. The social media leader blocked Australian users from viewing or sharing news content on its platform. The action was due to a law by Australian policymakers that required Facebook to pay for news content.
Australians have strongly criticized the social media company. The government termed the action “a misuse of the immense market power of these digital social giants.”
Google, however, has said it’s working on a global licensing program that will allow it to pay publishers and media houses for high-quality content.
