Digital news publishers body seek regulatory amendments for fair compensation and revenue sharing in India

Developments on discussions between the ministry and the digital news publishers' association were first reported on Storyboard18 in December 2023.

By  Storyboard18Jan 26, 2024 12:08 PM
Digital news publishers body seek regulatory amendments for fair compensation and revenue sharing in India
The amendments, according to Sujata Gupta, secretary at DNPA, would guarantee an opportunity to ensure that any company or Large Language Model (LLM) that uses data also appropriately compensates the sources providing the content or data. (Image Source: Unsplash)

Digital News Publishers Association is in constant dialogue with the Ministry of Electronics and Information Technology to push for introducing changes in the amendment to existing IT rules.

Sujata Gupta, secretary general at DNPA, said they are advocating for a timely amendment to existing IT rules in India, to incorporate a bargaining code to ensure fair revenue sharing between major tech corporations and digital news publishers.

The amendments, according to Gupta, would guarantee an opportunity to ensure that any company or Large Language Model (LLM) that uses data also appropriately compensates the sources providing the content or data.

“Drawing inspiration from international models like Canada's Online News Act and Australia's News Media and Digital Platforms Mandatory Bargaining Code, such regulatory modifications can establish a framework for negotiations and safeguard the interests of the Indian media industry,” she had said.

Globally, the fight for a fair revenue share has been ongoing, with countries like Australia, France, Canada and many other actively participating in this movement.

Towards the end of November, the Canadian government announced a pathbreaking agreement with Google. The American multinational technology company committed to paying C$100 million annually to support the country's news industry, in adherence to a new Canadian law mandating tech companies to compensate publishers for their content.

In contrast, India currently lacks a definitive law or policy facilitating a fair revenue share from major tech corporations.

While Apurva Chandra, secretary, ministry of information and broadcasting, said that the government can either wait for the Competition Commission of India's (CCI) regulation or independently draft an act, experts contend that a straightforward amendment to existing rules could take care of the issue.

“Waiting for the Competition Commission will take years. If you take a look at the existing IT rules, there's already a defined distinction between a publisher and an intermediary. The regulations encompass the establishment of a watchdog committee, provisions for arbitration and court proceedings, and mandatory data submission to the government when requested. What can be done immediately is incorporating a definition of a bargaining code. The Competition Commission can then determine the formula for negotiations, ensuring a fair deal,” development economist Aruna Sharma, who is also a retired government secretary who worked with the ministries of electronics and IT, told Storyboard18.

One of key objectives behind requesting an amendment to the existing rules is to prohibit platforms from retaliating against providers for participating in collective negotiations authorised or arbitration by blocking their sites.

Blocking is not a new element in this situation. In markets like Australia, Facebook threatened to block news content and also went ahead with the implementation of the News Media and Digital Platforms Mandatory Bargaining Code. However, with amendments in place later, the law was made flexible, prompting Facebook and Google to negotiate deals with multiple news organisations in the country.

Digital news publishers in India are hopeful that such models can be implemented in the country.

The CCI has been drawn into the fray. Not just the Digital News Publishers Association (DNPA) but the News Broadcasters and Digital Association (NBDA) and the Indian Newspaper Society (INS) jointly lodged a complaint with the CCI earlier this year. Their grievance pertains to Google's perceived conditions related to revenue-sharing agreements and questionable practices in advertisement intermediation services, among others.

First Published on Jan 26, 2024 12:08 PM

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