New IT law could force internet companies to pay media companies for content | Company

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New Delhi: India will soon introduce legislation requiring internet companies to pay fees to media organizations from which they source news content. A similar law enacted by the Australian Parliament in early 2021 had attracted worldwide attention.

“The Government of India will announce a new law to replace the Information Technology Act 2000, which would include provisions requiring internet companies to make payments to media companies for the use of their content,” the official said. Union Minister of State for Informatics, Rajeev Chandrasekhar. Manorama.

“Global technology companies are earning huge sums of money from digital advertisements and are dominating the industry. This is causing big losses for media organizations. We are seriously addressing the issue while preparing the new IT law,” added the minister.

After Australia introduced landmark legislation designed to curb global IT giants such as Google and Meta Platforms, which owns the popular online social network and social networking service Facebook, countries like France, the Germany and Spain have also taken steps to introduce a similar law. .

It is pointed out that Google and Facebook earn billions of dollars from news content. However, media organizations that generate news have no monetary benefit. Incidentally, various media outlets including the Indian Newspaper Society (INS) have been highlighting the issue for some time.

What Australian law says

The law implemented in Australia stipulates that Internet companies providing links or the bulk of news and other content from various media must pay a fee to the parent source. By law, Google and Facebook make large sums of money by inserting ads into news content after providing links in search results and news feeds.

As a result, media organizations that prepare the content are eligible to receive fees from Google and Facebook. Subsequently, a year after the enactment of the law, various Australian media received an amount of US$200 million (approximately Rs 1,594 crore) in payment for the use of their content.

How Google, Facebook reacted

Initially, Google and Facebook vehemently opposed the new law in Australia, with Google even threatening to cease all of its services in the country. However, Google quickly relented after learning that Australia was considering alternatives to Google.

Meanwhile, Facebook took a tougher stance and stopped providing news links in Australia. Facebook has also stopped providing information from Australia, including government announcements, in other countries.

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