The Unthinkable: Will Google News and Facebook Pay Publishers for Content?

February 15, 2021

Regulators are beginning to agree with publishers that platforms like Google News should pay for the content they post. News Showcase is Google’s answer to this trend, and The Verge reveals it is operating in two new countries in, “Google Now Pays 450 Sites to Bring You Free News, Including Some Paywalled Stories.” In the UK, 120 publishers have enlisted in alongside 40 in Argentina. Those nations join Germany and Brazil, where News Showcase launched last year, and Australia, which joined in just last week. The last example is in interesting study in regulatory pressure and corporate acquiescence. Writer Jon Porter explains:

“Last week, Google News Showcase launched in Australia, a country where the company is currently locking horns with lawmakers over new rules that could force it to pay news publishers for their content. Google recently threatened to pull its search engine from the country if the News Media Bargaining Code goes into effect. Last week, Australia’s Prime Minister Scott Morrison said he’d held ‘constructive’ talks with Google CEO Sundar Pichai over the new rules. The situation means that although seven Australian publishers have joined the program, covering over 25 publications, The Guardian reports that one outlet, Nine, chose not to negotiate with Google until the new code is brought in. In an FAQ, Google says it believes News Showcase should be compatible with the new rules, since publishers are free to enter into arbitration if they don’t like Google’s News Showcase deal.”

Google plans to soon add France, Canada, and Japan to its News Showcase roster. Meanwhile, Facebook has a similar plan. It is phasing content for which it is actually paying publishers into its News tab, which serves up both curated and personalized content. The initiative started in the US and recently began operation in the UK. Now we know the big tech companies are not completely impervious to regulatory pressure. What is next?

Cynthia Murrell, February 15, 2021

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