In a boost to the proposed Digital India Act, Australian MP Paul Fletcher on July 18 said that India would have an edge in “bargaining dynamics” with tech giants such as Google and Facebook if a legislation governing revenue-sharing between social media platforms and news publishers is brought in place.
Mr. Fletcher, a former Minister for Communications in Australia, was speaking at a virtual event held by the Digital News Publishers Association (DNPA), an industry association of media companies in India. The Hindu is a DNPA member.
Mr. Fletcher’s comments come at a time when the Ministry of Electronics and Information Technology is working on a draft Digital India Bill, which, if passed, will take over the handling of digital antitrust affairs from the Information Technology Act, 2000.
On the key topic of regulating revenue-sharing between Big Tech and news media businesses, Mr. Fletcher said, “India is a tech superpower. I am amazed by the extraordinary scale of India’s digital market. In bargaining dynamics, when India would come to the table with Big Tech giants, its leverage would be very different to countries with smaller populations.”
The Australian lawmaker piloted the landmark News Media Bargaining Code in his country, which allowed news organisations to seek compensation from tech platforms. The law put pressure on digital platforms to cut commercial deals to share revenues equitably with eligible news businesses for using their content.
Mr. Fletcher said that if a similar code was to find traction in India, “it will reach the desks of global tech company executives quicker than it did with Australia.” He recommended that India should identify a trigger based on which it can introduce a similar rule.
“In our case, the trigger was the sharp drop in ad revenue of news media outlets during the Covid-19 pandemic. That made us bring in a mandatory Code instead of a voluntary one,” the Australian MP said.
“The legislation led to multiple commercial deals between Google and Facebook, and numerous Australian media businesses. Based on an estimate by Rod Sims, former Chair of the ACCC (Australian Competition and Consumer Commission), it ensured over AU$200 million payments from Google and Facebook to news publishers. That apart, the Code saw newsrooms expand in size.”
Debunking criticism of the Code during Tuesday’s session attended by top officials and stakeholders from India’s leading news media businesses, the Australian MP said that the legislation has led to multiple commercial deals between Google and Facebook, and numerous Australian media businesses.
“Based on an estimate by Rod Sims, former Chair of the ACCC (Australian Competition and Consumer Commission), the legislation ensured over AU$200 million payments from Google and Facebook to news publishers. That apart, the Code saw newsrooms expand in size,” he said.
Mr. Fletcher also suggested the Indian and Australian governments should work closely on antitrust regulations, apart from economy and security. “How about exploring the further study of the Australian Code at the government-to-government level? I wonder if that channel could be opened,” he suggested.
