Publisher-platform imbalances need fixing

Source– The post is based on the article “Publisher-platform imbalances need fixing” published in “The Hindu” on 22nd July 2023.

Syllabus: GS2- Governance

Relevance: Regulation of digital news media

News- The article explains the disadvantages faced by news publishers on technology platforms and the approach of various countries to regulate the interaction between them.

What are issues faced by news publishers on technology platforms?

Absence of Fair Valuation– Digital advertising revenues are the result of a collaborative effort between publishers and platforms. Publishers don’t get a fair proportion of these revenues that stem from their journalism.

There are concerns related to reliance of publishers on platforms. These platforms often operate under monopolistic or duopolistic conditions.

This dependence arises due to platforms taking on various roles in digital news markets. They act as intermediaries in the search for online news content and provide the necessary infrastructure for publishers to engage in the online advertising market.

Enumerative Accountability– Platforms unilaterally define the measures of the quality and popularity of online news. They arbitrarily change measures to suit their own priorities.

Further, they refuse to share relevant data on advertising and viewership with stakeholders in the news economy.

What are approaches followed by countries across the world to regulate the relationship between digital platforms and publishers?

In 2021, Australia proposed a mechanism to govern the interaction between publishers and platforms. But the platforms retaliated.

Facebook blocked its Australian users from accessing thousands of news sites, which included vital sources of public information. Ultimately, the Australian government provided some concessions.

Last month, Canada’s Online News Act provided for fair compensation for publishers and the sustainability of local news. The United Kingdom is planning to introduce legislation to regulate the relationship between big tech and news outlets.

Brazil and South Africa are also taking steps in that direction. Indonesia has proposed Digital Platform Responsibilities for Quality Journalism. The United States has not taken any action.

What is the importance of these regulations?

The primary objective is to guarantee that news outlets receive a just portion of digital advertising revenues and have access to the data generated by platforms through the sale and distribution of online news.

Without these measures, news publishers may be compelled to accept unfair and potentially unsustainable terms set by platforms.

This could lead to a reluctance to invest in producing high-quality journalism and on-the-ground reporting. It will result in an increasing presence of propagators of misinformation and disinformation in the digital public sphere.

What is the Indian government approach in this regard?

Unfortunately, India has been slow in thinking and acting on mitigating these twin imbalances.

In December 2021, the Union Minister of State for Electronics and Technology said that the government has no intention to make big tech pay for news.

He has revised his positions and now acknowledges the disadvantages faced by news publishers in their dealings with platforms.

In 2021, the Digital News Publishers Association had filed a plea against Google in the Competition Commission of India. It accused Google of unfairly valuing their digital advertising share.

In February 2022, The Indian Newspaper Society (INS) filed a similar plea. It also highlighted Google’s search results are not based on the relevance of news content. So, it creates an uneven playing field among various publishers.

The report issued by the Standing Committee on Finance in December 2022, titled ‘Anti-Competitive Practices by Big Tech Companies,’ mirrored the concerns raised by the DNPA and the INS.

It emphasised that certain digital markets are susceptible to domination by only one or two major players. It made recommendations for evaluating competitive behaviour before digital markets become monopolised.