{"id":33949,"date":"2022-12-10T02:19:54","date_gmt":"2022-12-09T20:49:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=33949"},"modified":"2025-04-20T03:06:42","modified_gmt":"2025-04-19T21:36:42","slug":"news-media-bargaining-bill-in-us","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/news-media-bargaining-bill-in-us\/","title":{"rendered":"News media bargaining bill in US"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>News Summary<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>A legislative push in the United States, aimed at giving news organizations <u>greater power to negotiate fees<\/u> for the content shared on social media sites like Facebook, has run into rough weather.<\/li>\n<li>Meta (formerly Facebook Inc.) has threatened to remove all news content from its platform if the measure is passed.<\/li>\n<li>The proposal has also come under attack from other groups representing Internet giants like Amazon and Google.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>News Summary<\/strong><\/h2>\n<h3><strong>Proposed law<\/strong><\/h3>\n<ul>\n<li>The draft legislation is known as the Journalism Competition and Preservation Act (JCPA) of 2022.<\/li>\n<li>It would allow publishers greater powers to collectively bargain with companies like Facebook and Google for a larger share of ad revenue.<\/li>\n<li>The publishers have long complained of dwindling revenues as social media platforms cornered a large chunk of online advertisements.<\/li>\n<\/ul>\n<h3><strong>Opposition from internet giants<\/strong><\/h3>\n<ul>\n<li>Meta has argued that contrary to publishers\u2019 claims, platforms like Facebook actually help them with the distribution.<\/li>\n<li>As per them, the current legislation fails to recognize the key fact: publishers and broadcasters put their content on our platform themselves because it benefits their bottom line.<\/li>\n<li>No company should be forced to pay for content users don\u2019t want to see and that\u2019s not a meaningful source of revenue.<\/li>\n<li>These internet companies contend that the government is <strong>creating a cartel-like entity<\/strong> which <u>requires one private company to subsidize other private entities<\/u>.<\/li>\n<\/ul>\n<h3><strong>Legislation from other countries<\/strong><\/h3>\n<ul>\n<li>Australia and France have enacted similar laws, following which companies like Meta and Google have agreed to pay publishers in those countries.<\/li>\n<li>Others like Canada and New Zealand are currently deliberating similar legislation.<\/li>\n<\/ul>\n<h3><strong>The Australian law that compelled social media companies to pay publishers<\/strong><\/h3>\n<ul>\n<li>Australia had introduced a similar law in 2021, called the News Media Bargaining Code.<\/li>\n<li>The code aims to address the bargaining power imbalance between news media businesses and digital platforms and ensure that businesses are remunerated for the content they generate.<\/li>\n<li>In response to this code, the social media company had temporarily restricted news content from its news feed in the country.<\/li>\n<li>However, later these companies accepted the legislation and more than 30 commercial agreements had been signed between Australian news outlets and either Meta or Google.\n<ul>\n<li>Australian government review of the law\u2019s first year in effect said the law had been a success.<\/li>\n<li>As per report, the law enabled news businesses to employ additional journalists and make other valuable investments to assist their operations.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Why countries all over the world are bringing such law?<\/strong><\/h3>\n<ul>\n<li>A study carried on Australian market estimated that about 3,000 journalism jobs were lost in Australia in the past 10 years.<\/li>\n<li>This is due to the fact that the <u>traditional media companies pay advertising revenue to Google and Facebook which paid nothing in return for news content<\/u>.\n<ul>\n<li>It has been estimated that for every 100 Australian Dollar spent on online ads in Australia, excluding matrimonial and local advertisements, nearly a third goes to Google and Facebook.<\/li>\n<\/ul>\n<\/li>\n<li>Hence, a need was felt to bring legislation to ensure increased competition, increased consumer protection and a sustainable media landscape.<\/li>\n<\/ul>\n<h3><strong>Impact of such proposals<\/strong><\/h3>\n<ul>\n<li>The enacted proposals, by different countries have forced <u>Google to launch News Showcase<\/u>.<\/li>\n<li>Launched in October 2020, News Showcase is a global vehicle to pay news publishers for their content online.<\/li>\n<li>Under the program, Google pays participating publishers to \u201ccurate quality journalism for an improved online news experience that benefits readers and publishers\u201d.<\/li>\n<li>Google\u2019s News Showcase is available in a number of countries, including India.\n<ul>\n<li>In India, 30 news publishers including national, regional and local news organizations are part of it.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) Which country is the first to make Facebook and Google pay its media outlets for news?<\/strong><\/h3>\n<p>Australia was the first country to pass a law to make Google and Facebook pay for news content on their platforms.<\/p>\n<h3>\n<strong>Q2) What is news Showcase?<\/strong><\/h3>\n<p>To help readers discover new content, Google News Showcase offers no-charge access to select paywalled articles on a participating publisher&#8217;s site that would otherwise only be available to subscribers.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Journalism Competition and Preservation Act aims to give news organizations greater power to negotiate fees for the content shared on social 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