A new regulation that would guarantee equitable dealings between large internet corporations and news publishers is being considered by India. According to a credible source, this plan is modeled after actions taken in Australia and other nations requiring Google and Meta to pay for the use of news information on their platforms. According to sources cited in the paper, public consultations have already concluded for the planned Digital Competition Bill; this legislation is an addition to it. A parliamentary standing committee on finance led by Jayant Sinha proposed regulatory measures in 2022 to assist news publishers in negotiating equitable and transparent deals with significant digital companies.
It was left out of the Ministry of Corporate Affairs' Digital Competition Bill, nevertheless. Citing previously cited sources, the paper stated that this Bill seeks to establish criteria for large technology corporations to foster fair competition in digital markets. "The Ministry of Information and Broadcasting is considering the proposal to ensure a level playing field between news aggregators and news publishers," the newspaper quoted a source as saying. The possibility of creating a distinct legislation is being considered.
According to the source, the Ministry of Information and Broadcasting is looking at the news media bargaining code in Australia as well as impending laws of a similar nature in other countries. An analyst was noted in the study as noting, "Just the existence of a rule has driven BigAccording to an expert cited in the report, "Big Tech has been forced to negotiate with news publishers in countries where these frameworks are in place simply because of the regulation in place, fearing that they will be penalized for abusing their position if there is a complaint. As a result, the income of online news providers has increased dramatically.
Different levels of Negotiating Power
India and other nations are contemplating the creation of a legislative structure to guarantee equitable agreements between news organizations and large digital corporations. According to the report, policymakers are aware of the imbalance in negotiating leverage between tech giants that control the digital market and media businesses that heavily spend in news production, therefore mediating the relationship between advertisers and audiences. Digital platforms should be subject to limitations on their use of consumer data for news and should enhance their openness, according to a committee led by Parliamentary Member Jayant Sinha.
The Digital News Publishers Association in India has indicated support for aggressive rules on Big Tech to establish a fair and competitive environment for news publishers and major digital enterprises, as per the committee's recommendations on the Digital Competition Bill. A survey released on February 8 by Exchange4media, in association with the public relations and advertising company Dentsu Inc., states that the Indian advertising business was estimated to be worth Rs 93,166 crore in 2023. According to the survey, digital advertising made up Rs 40,865 crore of this total. It also showed that in 2023, digital advertising will rise at an astounding annual pace of 36.6%.
The Australian Bargaining Code
Under Australia's 2021 negotiating rule, qualified news organizations can bargain individually or collectively with internet behemoths like Meta and Google over payment for showcasing their news material. Comparably, Canada passed laws last year to guarantee parity in the country's digital media news industry.
Australia celebrated the passage of the "News Media and Digital Platforms Mandatory Bargaining Code" in November 2022 as a victory. "Over 30 commercial agreements between digital platforms (Google and Meta) and a cross-section of Australian news businesses have been struck, agreements that were highly unlikely to have been made without the Code," the Australian government stated in a review conducted after the media bargaining code had been in effect for a year.
