Facebook and Google are heading into a showdown with Congress over a law that would allow new organizations to bargain with tech platforms over the distribution of their content.
A bill that gained bipartisan support last Congress is expected to be reintroduced soon, and the tech platforms have already previewed their line of attack amid an ongoing battle over an Australian proposal that would force the Silicon Valley giants to pay publishers.
The Journalism Competition and Preservation Act would not go that far, but it would provide a four-year safe harbor from antitrust laws for print or digital news companies to allow them to collectively negotiate with digital content distributors, such as Google and Facebook, regarding the terms on how the content is distributed.
But some media advocates say it doesn’t adequately curb concerns raised by the market power of companies such as Facebook and Google — two companies already the target of federal antitrust investigations.
“Google paying outlets a little bit for content is basically just spitting on the fire. [It’s] not going to do anything, especially to help some of the smaller newspapers and outlets,” said Lauren Bassett, co-founder of the Save Journalism Project.
The House bill will be reintroduced by top lawmakers on the antitrust subcommittee, Rep. David CicillineDavid CicillineBiden pledges action on guns amid resistance LIVE COVERAGE: Senate trial moves to closing arguments Democrats warn of ‘whataboutism’ ahead of Trump defense MORE (D-R.I.) and Rep. Ken BuckKenneth (Ken) Robert BuckHouse Republicans gear up for conference meeting amid party civil war The Hill’s Morning Report – Presented by Facebook – Which path will Democrats take on COVID-19 bill? Lawmakers rip Robinhood’s decision on GameStop MORE (R-Colo.), spokespeople confirmed.
A companion bill introduced in the Senate last session by Sens. Amy KlobucharAmy KlobucharCongressional Democrats say Trump acquittal was foregone conclusion Sunday shows – Trump acquittal in second impeachment trial reverberates Klobuchar: Impeachment trial ‘was about not hiding history’ MORE (D-Minn.) and John KennedyJohn Neely KennedyMORE (R-La.) gained top Senate Republican Mitch McConnellAddison (Mitch) Mitchell McConnellTrump ‘won’t say yet’ if he’s running in 2024 On The Trail: Trump threatens a Tea Party redux Trump to appear on conservative networks in wake of Limbaugh’s death MORE (Ky.) as one of its three Republican cosponsors, underscoring growing political support for the measure. That bill is reportedly also expected to be reintroduced.
The Australian proposal would allow media companies to request payment from the tech giants for news articles on their platform. It subjects Google and Facebook to mandatory price arbitration if a deal can not be reached.
Google and Facebook have fiercely pushed back on it, arguing they do not hurt publishers because they direct readers to news websites.
At the end of January, Google threatened to cut its services from Australia over the proposal. As the Australian regulation looms, Google started announcing agreements with some larger news publishers, including Australian-based Seven West Media and News Corp, a New York-based company owned by Australian-born media mogul Rupert Murdoch.
Facebook on Wednesday said it will restrict Australian publishers from sharing or posting content and restrict Australian users from viewing or sharing international publishers’ links and posts.
“The proposed law … left us facing a stark choice: attempt to comply with a law that ignores the realities of this relationship, or stop allowing news content on our services in Australia. With a heavy heart, we are choosing the latter,” Facebook’s managing director of Australia and New Zealand William Easton wrote.
It’s unclear whether Facebook would take the same action if the U.S. were to adopt a similar policy, but the platform has not shied away from pushing back on federal…
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