Microsoft wades into Facebook news fight by siding with European publishers
London (CNN Business)Microsoft is joining forces with publishers in Europe to call for an Australia-style system that would force tech platforms such as Google and Facebook to pay news organizations for content.
The
company said Monday that it would team up with media industry groups
like the European Publishers Council to lobby for such a policy, which lawmakers around the world are now considering.
The move comes after Facebook (FB)
stopped people from finding news on its platform in Australia last week
rather than pay publishers for their content, a decision that produced a
global backlash and generated negative headlines for the social media
company.
"We
welcome Microsoft's recognition of the value that our content brings to
the core businesses of search engines and social networks," Christian
Van Thillo, the European Publishers Council's chairman, said in a
statement.
Australia's
government is pushing legislation that would allow certain media
outlets to bargain with tech companies so they could be paid for
distribution of the news they produce. Both parties would enter
arbitration if they can't reach an agreement.
The
European Union and the United States face growing pressure to adopt
similar measures. Canada's government has said it plans to introduce
legislation in the coming months.
Facebook has forcefully opposed the Australian legislation. Last week, it took the extraordinary step of banning users in the country from finding or sharing news
on its service in protest of the policy. Google, meanwhile, went from
threatening to pull its search engine to cutting deals with some of the
country's largest media organizations, including Rupert Murdoch's News
Corp.
Microsoft (MSFT),
which owns the search engine Bing, is taking a different approach. It
voiced its support for the legislation and has committed to keeping its
services in Australia if it takes effect, seeing a chance to steal
market share from rival Google (GOOGL).
"It was an opportunity to combine good business with a good cause," President Brad Smith said in a blog post earlier this month.
The
company has said it would back similar measures in other countries,
including in the European Union, where policymakers are debating new
laws that would rein in the power of Big Tech companies.
Margrethe
Vestager, the EU commissioner leading the charge on tech regulation, is
holding a consultation on the legislation with members of European
Parliament this week.
New copyright laws
in Europe require search engines and social media platforms to share
revenue with publishers if their content is displayed. But European
publishers and Microsoft want leaders to enact "additional regulatory
measures" to ensure publishers have clout in negotiations.
Some French publishers have signed up with Google,
but without an arbitration mechanism, they fear the press "might not
have the economic strength to negotiate fair and balanced agreements
with these gatekeeper tech companies, who might otherwise threaten to
walk away from negotiations or exit markets entirely," according to
Monday's press release.
"Access
to fresh, broad and deep press coverage is critical to the success of
our democracies," Microsoft vice president Casper Klynge said in a
statement.
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