Tech giants are accused of ‘scaremongering’ over fight against laws that would force them to pay fairly for trusted news content
- Claims dismissed Digital Markets Unit would have negative impact on UK press
- New digital watchdog to mediate between publishers and platforms like Google
Tech giants have been accused of ‘scaremongering’ in lobbying efforts against laws that will force them to pay fairly for trusted news content.
The News Media Association (NMA) has dismissed claims that the Digital Markets Unit (DMU), which will rein in the power of big tech, would have a negative impact on the UK press.
The Digital Markets, Competition and Consumers Bill is set to empower the new digital watchdog to mediate on negotiations between publishers and platforms, including Facebook and Google, over fair payment for news content.
But opponents of the Bill are ramping up their efforts against it, including claiming it could lead to more clickbait and entrench the power of the biggest newspapers.
Facebook and Google, meanwhile, have sought to counter research suggesting they make up to £1billion a year from news content – yet pay back only £75million a year.
The Digital Markets, Competition and Consumers Bill is set to empower the new digital watchdog to mediate on negotiations between publishers and platforms, including Facebook and Google, over fair payment for news content
Owen Meredith (pictured), chief executive of the NMA, said: ‘This paper dispels the scaremongering around what should be an easily accepted principle – that the platforms should trade on fair and reasonable terms with the trusted news publishers that safeguard our democracy’
However, a paper by the NMA, which represents local, regional and national publishers, has ‘debunked these myths’ and highlighted how the DMU will help both sides.
It says: ‘If platforms are truly convinced news publishers provide them with little value, it would make commercial sense for them to welcome DMU regulation and reap the benefits of negotiation.
READ MORE: Act now to protect freedom of the Press, MPs are urged
‘Instead, platforms have chosen to vociferously lobby against the Bill, and their efforts have given rise to several misrepresentations.’
MPs will begin hearing evidence today as the Bill enters committee stage in the Commons.
Similar legislation in Australia has already delivered payment deals for many news outlets.
Owen Meredith, chief executive of the NMA, said: ‘This paper dispels the scaremongering around what should be an easily accepted principle – that the platforms should trade on fair and reasonable terms with the trusted news publishers that safeguard our democracy.
‘We look towards the committee and Government to ensure… the legislation is not watered down, so the new regime delivers fair competition in our digital economy.’
The NMA’s paper said: ‘Platforms may have created an efficient advertising model, but they have not created any public interest journalism.
‘Instead, they threaten its production because they benefit greatly from publishers’ output without having paid for it.’
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