Looks like the screws are being put to the big tech firms. About time, IMO.
Lobbyists for Facebook and Google threw their weight against new U.S. legislation that seeks to aid struggling news publishers by allowing them to negotiate collectively against the tech companies over revenue sharing and other deals.
U.S. lawmakers introduced the plan in Congress on Wednesday to address a perceived power imbalance between news outlets and the tech giants. Critics accuse the companies of using content to drive traffic and ad revenue to their platforms without fairly compensating the publishers.
The move adds to pressure on the tech firms, which are facing antitrust lawsuits and the threat of more regulation.
Carl Szabo of NetChoice said his goal was to kill the bill or at least convince lawmakers to amend it so that it would be restricted to smaller publications, excluding outlets such as the Washington Post or New York Times.
"I don't think they should be doing this legislation, period," he said. "This legislation allows the Washington Post and New York Times and other big papers to call the shots for the smaller outlets."
Some industry observers say the proposal could disproportionately benefit private equity firms and hedge funds that have snatched up medium and large newspaper chains. Newspapers such as the Chicago Tribune and the Miami Herald are controlled by the likes of Alden Global Capital and Chatham Asset Management.
The bills come not long after Facebook battled with Australia over how much it should pay news publishers for their content. During the fight, Facebook blacked out Australian news pages and only restored them once the government granted concessions.
Facebook declined comment on the new U.S. legislation.
The tech platforms appear to have few friends in Congress, where Democrats have been angered by misinformation online and conservatives argue that their views have been stifled
Lobbyists for Facebook and Google threw their weight against new U.S. legislation that seeks to aid struggling news publishers by allowing them to negotiate collectively against the tech companies over revenue sharing and other deals.
U.S. lawmakers introduced the plan in Congress on Wednesday to address a perceived power imbalance between news outlets and the tech giants. Critics accuse the companies of using content to drive traffic and ad revenue to their platforms without fairly compensating the publishers.
The move adds to pressure on the tech firms, which are facing antitrust lawsuits and the threat of more regulation.
Carl Szabo of NetChoice said his goal was to kill the bill or at least convince lawmakers to amend it so that it would be restricted to smaller publications, excluding outlets such as the Washington Post or New York Times.
"I don't think they should be doing this legislation, period," he said. "This legislation allows the Washington Post and New York Times and other big papers to call the shots for the smaller outlets."
Some industry observers say the proposal could disproportionately benefit private equity firms and hedge funds that have snatched up medium and large newspaper chains. Newspapers such as the Chicago Tribune and the Miami Herald are controlled by the likes of Alden Global Capital and Chatham Asset Management.
The bills come not long after Facebook battled with Australia over how much it should pay news publishers for their content. During the fight, Facebook blacked out Australian news pages and only restored them once the government granted concessions.
Facebook declined comment on the new U.S. legislation.
The tech platforms appear to have few friends in Congress, where Democrats have been angered by misinformation online and conservatives argue that their views have been stifled
