India Is Weighing New Law for Fair Remunerations to News Media From Big Tech

India plans to introduce a new law ensuring fair compensation from tech giants to news publishers, following Australia's model. The legislation aims to address power imbalances in digital advertising and create a level playing field for news organizations.

The Indian government is seriously thinking about the possibility to adopt a new law that would guarantee adequate payments for the content from big technology platforms. This comes in the wake of efforts by other countries like Australia and Canada which have forced social media giants like Google and Meta to compensate for the news content they share on their respective platforms.

Key points of the proposed legislation:Key points of the proposed legislation:

1. The law would be different from the Digital Competition Bill which is still under the public debate.

2. It is therefore intended to correct the imbalance in the advertising market where technology firms have gained an upper hand over news organizations.

3. The Ministry of Information and Broadcasting is thinking about Australia’s news media bargaining code and similar regulation laws of other countries.

4. The proposal is based on the suggestion given by a parliamentary standing committee on finance under the charimanship of Jayant Sinha in this year 2022.

Background:

- As per the data available, in 2023, the total advertising market size in India was Rs 93,166 crore out of which Rs 40,865 crore was contributed by digital advertising which was growing at the rate of 36%. 6% annually.

- Australia’s similar law, rolled out in 2021, has led to more than 30 commercial arrangements between the digital giants and news organisations.

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The proposed legislation will likely lead to a reduction in market imbalances in the digital news market and increase the prospects for digital news publishers’ revenues.