New Zealand will become the third country after Australia and Canada to ask Google and Facebook-owner Meta Platforms to pay news publishers for content that makes its way on their platforms. In fact, New Zealand’s proposal will be based on a similar law in Australia and legislation in Canada, as per news agency Reuters.
The law will be designed to act as an incentive for digital platforms to reach voluntary deals with local news outlets, New Zealand Broadcasting Minister Willie Jackson said in a statement. “It’s not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it’s only fair they pay,” Jackson was quoted as saying.
As per the report, the proposal will allow Google and Facebook to negotiate with publishers without government intervention. In case no agreement is reached, the law will “plot out a mandatory negotiating process.”
Irking Big Tech
Just like it happened in Canada, the technology companies may push back against the proposal. The proposal in Canada will force digital platforms to feature Canadian content and compensate news outlets. In order to feature Canadian content creators, the companies will have to rework their existing algorithms.
Here’s what Meta has to say
The Wall Street Journal cited Meta’s regional policy director, Mia Garlick, as saying that New Zealand’s proposal misunderstands the relationship between Facebook and news. Garlick also noted that it is the publishers that are in control of their content on Facebook and not the social media company.
“We are concerned about the unintended impacts future legislation will have on innovation in both the media and broader tech sector,” she was quoted as saying.
News publishers globally previously noted that tech giants benefit from their content by drawing users to their platforms. They even claimed that it is difficult for some, particularly smaller outlets, to negotiate commercial deals with tech companies.
To this, Facebook and Google reportedly argued that publishers benefit by having their links shared on the platform, which drives traffic to their websites. The Wall Street Journal report also says that tech giants already have commercial deals with publishers, in some cases before the threat of legislation was introduced.
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