The Indian government is planning to make Big Tech pay publishers for using their content on their respective platforms, as other countries aim to create a revenue-sharing bridge between internet companies like Google and Facebook and digital news publishers.
According to Minister of State for IT and Electronics, Rajeev Chandrasekhar, the government is mulling revision in IT laws to effect this change.
“The market power on digital advertising that is currently being exercised by the Big Tech majors, which places Indian media companies at a position of disadvantage, is an issue that is seriously being examined in the context of new legalisations and rules,” the minister told The Times of India.
If implemented, the new law will force Big Tech companies to pay digital news publishers a share of the revenue earned via using their original content.
Google has already signed deals to pay more than 300 publishers in Germany, France and other EU countries for using their content on its platform.
The Canadian government also moved a law early this year to bring about fairness in revenue sharing between digital news publishers and intermediary platforms.
In March this year, the the Competition Commission of India (CCI) ordered an investigation into complaints against Google for abusing its dominant position related to news referral services and Google Adtech Services in the Indian online news media market.
According to the Indian Newspapers Society (INS), media houses are being kept in the dark on the total advertising revenue collected by Google and what percentage of the advertising revenue is being transferred to media organisations.
The CCI found that prima facie, these allegations of abuse of dominant position are under the purview of the Competition Act, 2002 and requires a detailed investigation by the Additional Director General.
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