Article by Matthew Moore for The Times - published 21 April 2020
Ministers have been urged to make the tech giants Facebook and Google share their advertising revenue with news publishers, after similar proposals were adopted in Australia.
Media companies will be entitled to a slice of the money that digital platforms generate from their content, under plans announced by the Australian government yesterday.
A new mandatory code of conduct, covering the sharing of both data and revenues, will be drawn up by the country’s Competition and Consumer Commission after talks towards a voluntary agreement stalled.
The Facebook and Google “duopoly” now account for more than two-thirds (68.5 per cent) of the UK’s digital advertising market, according to analysts eMarketer.
Much of their traffic comes from people circulating or searching for news stories, but the companies have resisted pressure to reimburse publishers for their content.
The financial challenges facing the news industry have been exacerbated by the coronavirus pandemic, with swathes of titles now at risk of closure due to collapsing sales and ad bookings.
MPs and unions urged the UK to consider adopting the Australian model, warning that the future of democracy is at risk if quality publishers can no longer cover the costs of newsgathering.
Damian Collins, the former chairman of the culture select committee, said: “We need to redress the balance between tech platforms and news companies. There needs to be more of a level playing field.
The Tory MP added: “This is something we should have been doing anyway, but the coronavirus has massively affected the news media.. We’re seeing papers going out of print. The entire ad revenue-funded model for news content has been massively challenged - it makes the case for action even more urgent.”
Michelle Stanistreet, general secretary of the National Union of Journalists, also backed the Australian plans, saying Facebook and Google “have had a free ride on the back of the mainstream press for too long.”
The NUJ is lobbying for a 6 per cent windfall levy on the tech giants to support public interest journalism.
Josh Frydenberg, Treasurer of Australia, said the market dominance of the tech giants required urgent action.“These are big companies that we are dealing with but there is also so much at stake, so we’re prepared for this fight,” he said.
Oliver Dowden, the Culture Secretary, has urged Britons to continue buying newspapers during the pandemic to help the support the industry.