This model of income distribution between Internet companies and news publishers will be built on the model common in Australia and parts of the European Union.
“The bargaining power in digital advertising currently enjoyed by large technology companies, which puts Indian media companies at a disadvantage, is an issue that is being seriously explored in the context of new legalizations and regulations,” the Minister of State said. Rajiv Chandrasekhar told The Times of India about information technology (IT) and electronics.
He said the government is considering changes to IT laws.
If implemented, the new law would force big tech companies to pay digital news publishers a portion of the revenue generated from the use of their original content.
“News publishers have no negotiating leverage at all, and this needs to be decided at the legislative level. This is an important issue for us,” the minister said.
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Google has already signed agreements to pay more than 300 publishers in Germany, France and other EU countries for using their content on its platform. The Canadian government also introduced legislation earlier this year to ensure a fair distribution of revenue between digital news publishers and intermediary platforms.
In March of this year, the Competition Commission of India (CCI) ordered an investigation into complaints against Google for abusing its dominant position in news reference services and Google Adtech Services in the Indian online news market.
According to the Indian Newspaper Society (INS), the media is kept in the dark about the total ad revenue collected by Google and what percentage of the ad revenue is given to media organizations.
The CCI found that, prima facie, these allegations of abuse of dominance fall within the scope of the Competition Act 2002 and require detailed investigation by the additional CEO.