EU Digital Services – BigTech and Legacy Media – NewsCorp

Presently the EU is looking into more regulation on digital services and markets, even playing field for all, limits to expansion by Big Tech, hate speech, fines, policing platforms, etc.; backgrounded by talk in Australia of regulating Big Tech more.  

The latter is not so related to the EU’s actions but is more about Rupert Murdoch’s legacy media in NewsCorp, and its overbearing influence on its peers, politics and society in Australia, while losing money and asking for subsidies.  Nowadays it is demanding constraints on Big Tech i.e. payment for NewsCorp’s (plus other oligopoly legacy media) ‘entertainment content’ and partisan political agit prop, while still attacking the public broadcaster the ABC, restricting the NBN National Broadband Network, unclear tax arrangements and having a near monopoly presence in Australia.

The following gives an overview and summary of EU initiatives from Politico:

Europe rewrites rulebook for digital age – The bloc wants to impose fines of up to 10 percent of companies’ revenue if they abuse their position in digital markets.

Many of Silicon Valley’s biggest companies could face blockbuster fines under new proposals from the European Union announced Tuesday aimed at boosting digital competition and protecting people from online harm.

The announcement represents a watershed moment for Ursula von der Leyen’s Commission, which has made so-called “technological sovereignty,” or efforts to bolster the bloc’s role in digital markets, a central piece of its legislative agenda.

Under the proposals, known as the Digital Markets Act and Digital Services Act, large online platforms like Google, Amazon and Facebook will face new limits on how they can expand their online empires or face levies of up to 10 percent of their global revenue — potentially billions of euros — for unfairly hamstringing smaller rivals.

In the most egregious cases, EU regulators would be granted stronger powers to break up companies that flouted the bloc’s new digital rulebook.

Brussels also outlined separate fines of up to six percent of annual revenue for Big Tech companies — those with at least 45 million users across the 27-country bloc — that fail to limit how illegal material, everything from hate speech to counterfeit products, can spread across their networks…..

Digital Markets Act: Dos and don’ts

The centerpiece of Europe’s digital plans is aimed at boosting online competition in a world dominated by Silicon Valley.

As part of the proposals, the Digital Markets Act will impose new obligations on so-called “gatekeepers,” or online players that determine how other companies interact with online users, to ensure these platforms do not stop others from competing for users. The rules will cover companies offering digital services like online search, social networking, video-sharing platforms, cloud computing, internet messaging services, online operating systems, online marketplaces and advertising products.

Failure to live by these rules could lead to hefty fines up to 10 percent of a company’s global revenue, or — in the worst cases — threats to break up firms that repeatedly break the new rules, a provision that is already baked into EU law…..

Digital Services Act: Greater responsibility

Brussels also unveiled a sweeping reboot of how large platforms must police their platforms for illegal material — rules that have not been updated in two decades.

Under those separate proposals, known as the Digital Services Act, online platforms will have to do more to limit the spread of illegal content and goods. The United Kingdom published similar proposals earlier on Tuesday, while the United States is mulling its own changes to so-called content liability to force platforms to further police what is posted or sold online.

The largest platforms like Facebook, Google and Amazon will have to provide regulators and outside groups with greater access to internal data, and appoint independent auditors who will determine if these firms are compliant with the new rules.

That will require these companies to carry out yearly risk assessments over how they are stopping illegal content and goods from spreading on their networks. National regulators will be granted more powers, including the ability to levy fines of up to six percent of a firm’s annual revenue if companies flout the regulations…..

For EU officials, Tuesday’s announcements mark their latest attempt to create greater competition in digital markets and protect people online from a wave of illegal material. 

But many European politicians, tech executives and civil society groups still disagree over how best to promote those goals while still encouraging the bloc’s online economy to compete with those of the U.S. and China.

That balance — Europe pushing for greater control over the online world while also boosting its digital economy — will now take center stage.

“Now, the U.S., us, the Australians, the Japanese are part of a global conversation about how to balance things because the most important thing here is that with size comes responsibility,” Vestager said. “All business operating in Europe — they can be big ones, they can be small ones — can freely and fairly compete online just as they do offline.”

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NewsCorp Australia vs. Google and Facebook BigTech

Murdoch’s NewsCorp Australia vs. Google and Facebook or BigTech

Australian media outlets led by Murdoch’s NewsCorp, Google, Facebook, (mostly) conservative politicians and commentators (catering to above median voter age demographics) are demanding payment for any use of their news content or ‘journalism’ by Google and Facebook (catering more to below median voter age demographics), including a broad based focus upon posts, indexing, shares and links; backgrounded by Google threats to withdraw Google search and some media outlets from indexing.

However, the campaign conflates several issues but also misses other related issues of importance e.g. monopoly or anti-competitive behaviour by all players, opaque financial or tax arrangements, lack of good digital regulation e.g. privacy in Australia, decline in quality journalism and diversity of views in legacy media, while NewsCorp is paywalled, backgrounded by special treatment of major media players in Australia by the governing LNP Liberal National Party (freely promoted by NewsCorp), at the expense of quality, local and independent media, and an informed society.

Following are excerpts from international and Australian media presenting a confusing array of issues, causes, solutions, and gaps, or silence.

From Deutsche Welle

Google vs. Australia: 5 questions and answers

Australia wants Google to pay for displaying local media content. In return, the tech giant has threatened to disable its search engine in the country. Could this confrontation set a precedent?

What’s happening in Australia?

Australia has proposed a bill that would oblige Google and Facebook to pay license fees to Australian media companies for sharing their journalistic content. Noncompliance would incur millions in fines. In response, Google has threatened to block Australian users from accessing its search engine should the bill become law.

Mel Silva, managing director of Google Australia and New Zealand, told an Australian senate committee her company had no other choice but to block access to Google’s search engine in Australia should the bill be adopted in its current form. Even though, she said, this was the last thing Google wanted.

Australian Prime Minister Scott Morrison in turn declared that his country would not be intimated, saying, “We don’t respond to threats.” He added that “Australia makes our rules for things you can do in Australia. That’s done in our Parliament.”….

Why has the confrontation escalated?

Google has said it is willing to negotiate with publishers over paying license fees for content. The tech giant, however, argues Australia’s proposed law goes too far. It would oblige Google to pay not only when providing extensive previews of media content, but also when sharing links to the content. This, said Silva, would undermine the modus operandi of search engines…..

What’s at stake?

“Search engines earn considerable money from media content, whereas publishers earn little,” said Christian Solmecke, a Cologne-based lawyer specialized in media and internet law. Google, however, argues that publishers benefit from the platform, as users are directed to media content when it is indexed on the Google Newsfeed and elsewhere.

But publishers want a bigger share of the pie by receiving licensing fees. “Billions are thus at stake for Google,” said Solmecke. He doubts the tech giant will follow through on its threat and disable the search engine in Australia. “After all, that search engine is an elementary part of the digital world.”

Is the EU planning a similar law?

In the spring of 2019, the EU adopted an ancillary copyright directive. All members states must now translate the directive into national legislation and adopt national ancillary copyright laws. Akin to the proposed Australian media bill, the EU directive aims to ensure publishers gain a share of revenue earned by internet platforms like Google when sharing journalistic content. Tech companies like Google generate revenue by, for instance, placing ads next to search results.

However, the directive does not place as many demands on companies such as Google and Facebook. “European and German ancillary copyright law is and will remain more narrow than the Australian bill,” said Stephan Dirks, a lawyer specialized in copyright and media law in Hamburg. Unlike the Australian bill, the EU directive allows tech platforms to display short media snippets for free. And it does not establish an automated arbitration model, either.

European confrontation looming?

Even though EU ancillary copyright law is more limited than the planned Australian law, experts do not rule out EU member states clashing with Google….

…..Most EU member states are yet to pass their own ancillary copyright laws. It thus cannot be ruled out that Google’s threats will have an impact on national lawmaking processes, said Dirks.

Joel Fitzgibbon Helps Albo Show Who’s In Charge! (Ross Leigh, 31 Jan 2021)

Another viewpoint via AIMN Australian Independent Media Network suggesting private and dominant media vs. private and dominant digital companies, (the former are) pushing credibility on their demands for fairness when they too run monopolies, receive subsidies financial and in kind e.g. dilution of media ownership laws, reach etc….

‘Speaking of transitions, I’m still trying to get a handle on the whole Google should pay for content thing. While I think that Google is far too big and we need to be looking at ways to ensure it pays its share of tax and doesn’t take advantage of its near monopoly position, arguing that it should pay media for directing people to their site is like asking the Uber driver to pay a fee every time he brings someone to your restaurant. Whatever else, it does strike me as odd that the government is getting involved in this dispute between private companies and coming down so hard on the side of the media companies.

At least it would strike me as odd if it weren’t for the fact that the same government paid Murdoch companies to cover women’s sport and the Murdoch companies charge the ABC for the right to show it.’

Fakebooks in Poland and Hungary

Meanwhile in Central Europe, Poland and Hungary have launched local versions citing ‘censorship of conservative views’ as the reason versus accusations of trying to limit freedom of speech through a nationalist lens:

Local versions of Facebook have been launched in Poland and Hungary, though experience shows that technology ventures conceived with politically biased and nationalistic motives rarely succeed.

Poland and Hungary have seen the launch recently of locally developed versions of Facebook, as criticism of the US social media giants grows amid allegations of censorship and the silencing of conservative voices.

The creators behind Hundub in Hungary and Albicla in Poland both cite the dominance of the US social media companies and concern over their impact on free speech as reasons for their launch – a topic which has gained prominence since Facebook, Twitter and Instagram banned Donald Trump for his role in mobilising crowds that stormed the Capitol in Washington DC on January 6. It is notable that both of the new platforms hail from countries with nationalist-populist governments, whose supporters often rail against the power of the major social media platforms and their managers’ alleged anti-conservative bias.

Albicla’s connection to the ruling Law and Justice (PiS) party is explicit. Right-wing activists affiliated with the PiS-friendly weekly Gazeta Polska are behind Albicla….

……The December 6 launch of Hundub received little attention until the government-loyal Magyar Nemzet began acclaiming it as a truly Hungarian and censorship-free alternative to Facebook, which, the paper argues, treats Hungarian government politicians unfairly. Prime Minister Viktor Orban was one of the first politicians to sign up to Hundub, but all political parties have rushed to register, starting with the liberal-centrist Momentum, the party most favoured by young people.

Pal – a previously unknown entrepreneur from the eastern Hungarian city of Debrecen – said his goal was to launch a social media platform that supports free speech, from both the left and right, and is free from political censorship. “The social media giants have grown too big and there must be an alternative to them,” Pal told Magyar Nemzet, accusing the US tech company of deleting the accounts of thousands of Hungarians without reason.

While it’s unclear whether there is any government involvement in Hundub, its launch is proving handy for the prime minister’s ruling Fidesz party in its fight against the US tech giants. Judit Varga, the combative justice minister, regularly lashes out at Facebook and Twitter, accusing them of limiting right-wing, conservative and Christian views. Only last week, she consulted with the president of the Competition Authority and convened an extraordinary meeting of the Digital Freedom Committee to discuss possible responses to the “recent abuses by the tech giants”…..

Future of Farcebooks

Unfortunately for the Polish and Hungarian governments and their supporters, rarely have such technology ventures succeeded.’

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Climate Change Science Attitudes Australia and Koch in USA

Climate science or climate change denialism have been apparent for some decades since the 1970s with Koch Industries being central along with ‘big oil’ of Exxon Mobil etc. in funding through ‘Dark Money’ academia, research, think tanks, media, politicians and PR techniques to influence society.  Now we see the results including wide-spread climate denialism, avoidance of environmental protections and negative media PR campaigns; meanwhile the roots of this strategy have become more transparent with legal action following. 

 

Climate Lawsuits Are Coming for Koch Industries

 

Dharna Noor June 25, 2020

 

Minnesota Attorney General Keith Ellison announced on Wednesday that he’s suing ExxonMobil, Koch Industries, and the American Petroleum Institute because the three firms deceived customers about the climate crisis. This is the first lawsuit of its kind to name API and Koch Industries, and it takes a novel approach by suing them solely for the lies they told.

 

The consumer fraud lawsuit alleges that the companies engaged in a multi-decade “campaign of deception,” hiding the fact that they understood as early as the 1950s that oil and gas production contributes to climate breakdown and still chose to extract, market, and sell the fuels. It includes claims for fraud, failure to warn and violations of Minnesota statutes on consumer fraud, deceptive trade practices and false statements in advertising. As retribution, it calls for Minnesotans to be compensated for their losses and for the defendants to fund a public education campaign about the dangers of climate change.

 

“We’re here suing these defendants, API, ExxonMobil and Koch, for hiding the truth, confusing the facts and muddling the water to devastating effect,” Ellison said at a news conference…..

 

….. But while other lawsuits have targeted ExxonMobil and other major oil producers, Ellison’s groundbreaking suit targets not just the polluting companies but also fossil fuel lobbyists who also deceived consumers. The multinational Koch Industries’ does produce fossil fuel products — in fact, it owns a large Minnesota refinery that manufactures about 80% of the gasoline used in the state — but it is also heavily involved in lobbying for the fossil fuel industry’s interests. And API is the largest U.S. trade association for oil and natural gas companies. Naming these representatives, rather than just fossil fuel producers themselves, lays out that they had a role in the deception as well.

 

Meanwhile in Australia, from SBS on climate change attitudes:

 

The number of climate deniers in Australia is more than double the global average, new study finds

 

News consumers in Australia are more likely to believe climate change is “not at all” serious compared to news consumers in other countries, according to new research.

 

16/06/2020 by Caroline Fisher & Sora Park

 

Australian news consumers are far more likely to believe climate change is “not at all” serious compared to news users in other countries. That’s according to new research that surveyed 2,131 Australians about their news consumption in relation to climate change.

 

The Digital News Report: Australia 2020 was conducted by the University of Canberra at the end of the severe bushfire season during 17 January and 8 February, 2020.

 

It also found the level of climate change concern varies considerably depending on age, gender, education, place of residence, political orientation and the type of news consumed.

 

Young people are much more concerned than older generations, women are more concerned than men, and city-dwellers think it’s more serious than news consumers in regional and rural Australia.

 

Strident critics in commercial media

 

There’s a strong connection between the brands people use and whether they think climate change is serious.

 

More than one-third (35 per cent) of people who listen to commercial AM radio (such as 2GB, 2UE, 3AW) or watch Sky News consider climate change to be “not at all” or “not very” serious, followed by Fox News consumers (32 per cent).

 

This is perhaps not surprising when some of the most strident critics of climate change science can be found on commercial AM radio, Sky and Fox News.

 

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Digital Challenges to Traditional News Media Models

In Australia, and internationally, traditional or legacy print media is being challenged not by its importance in informing people e.g. during bushfires, Covid-19 crisis etc. but related challenges of economics, populist politics, innovation or lack of and now preferred use of digital channels and major social media like Facebook and Google by most people nowadays.

 

Following are excerpts from articles outlining challenges of populism, PR, social media or atomisation of channels, and possible solutions to support news, democracy, innovation and business models in a digital world.

 

From Inside Story Australia:

 

How disasters are shaping Australians’ news habits

 

A new study tracks the rise in news consumption during the bushfires and the pandemic — and finds a glimmer of hope for publishers.

 

In times of great uncertainty, readers and viewers will seek out reliable, accurate and up-to-date news — doubly so when their own safety and wellbeing are at stake. But will the news media continue to be there when they’re needed?

 

The latest Digital News Report: Australia, the sixth annual study of national news consumption trends, provides further evidence that Australians still rely on the news media — directly or indirectly — regardless of its financial difficulties…..

 

….News businesses, digital platforms and the government will need to reconsider how to maintain a healthy news ecosystem and keep citizens informed. Paying attention to what news consumers are telling us would be a good starting point.

 

Our survey confirmed that social media and search are now the two major pathways to online news, with a growing number of people accessing news through mobile alerts, newsletters and aggregator apps. News consumers are trying to find efficient ways to curate and organise the vast amount of news available to them. Rather than go directly to the news-brand websites themselves, audiences are increasingly relying on Google and Facebook to find what they want….

 

….But we know news media businesses are struggling to adapt to the digital environment, and we know they haven’t yet found a sustainable means of surviving.

 

From The Conversation Australia:

 

Media have helped create a crisis of democracy – now they must play a vital role in its revival

 

In May 2020, with the world still in the grip of the coronavirus pandemic, Margaret MacMillan, an historian at the University of Toronto, wrote an essay in The Economist about the possibilities for life after the pandemic had passed.

 

On a scale of one to ten, where one was utter despair and ten was cautious hopefulness, it would have rated about six. Her thesis was that the future will be decided by a fundamental choice between reform and calamity….

 

….She was writing against a backdrop of a larger crisis – the crisis in democracy. The most spectacular symptoms of this were the election of Donald Trump as president of the United States and the Brexit referendum. Both occurred in 2016, and both appealed to populism largely based on issues of race and immigration….

 

How the pandemic contracted the media landscape further

 

Alongside these developments, the existential crisis facing news media was made worse by the coronavirus pandemic. As business activity was brought to a stop by the lockdown, the need for advertising was drastically reduced.

 

Coming on top of the haemorrhaging of advertising revenue to social media over the previous 15 years, this proved fatal to some newspapers…..

 

Defending against the digital onslaught

 

At a national level, the Australian government took up a recommendation by the Australian Competition and Consumer Commission to force the global platforms, particularly Facebook and Google, to pay for the news it took from Australian media….

 

Populism and scapegoating

 

A third factor in the crisis, exacerbated by the first two, is the rise of populism. Its defining characteristics are distrust of elites, negative stereotyping, the creation of a hated “other”, and scapegoating. The hated “other” has usually been defined in terms of race, colour, ethnicity, nationality, religion or some combination of them.

 

Powerful elements of the news media, most notably Fox News in the United States, Sky News in Australia and the Murdoch tabloids in Britain, have exploited and promoted populist sentiment……

 

From Mumbrella Australia:

 

Publishers: Stop expecting handouts from Facebook and Google, start innovating

 

 

Facebook and Google direct enormous volumes of traffic to news publishers. But instead of paying for the privilege, like other brands do, publishers expect to get paid. Simon Larcey says that instead of the ‘last-ditch, half-assed cash grab’, media companies need to, unsurprisingly, innovate….

 

……In a nutshell, this sums up the ludicrous move by the Australian Competition and Consumer Commission and local news publishers, which have demanded that Facebook and Google cough up cash for any news content that the digital giants share across their platforms. And with Google agreeing to play ball last week, it looks like these demands are being met.

 

While some might regard this move as a digital giant throwing a lifeline to a drowning local news industry, other, more cynically minded people – myself included – might see this a move as one developed by Google’s PR department to win the hearts and minds of stakeholders. Putting Google’s motives to one side, there’s a risk that this is yet another nail in the coffin, an admission of defeat by local publishers who are no longer able to successfully compete….

 

The problem with handouts

 

Welcome to 2020, and after years of lobbying, the government has decided that if the news publishers of Australia cannot build a sustainable digital advertising revenue model, the two tech platforms will be strong-armed into footing the bill……

 

…….The numbers from the digital giants are probably even larger today. At least 50% of all news traffic is directed to Australian news sites via third parties. If Australian news providers did not have these two platforms, their traffic would be cut in half, and they would generate half the ad revenue. Any brand or marketer wanting to get that type of traffic to their site would pay Facebook and Google big money – in fact they do – yet Australian publishers think they should be paid for the privilege. It makes no sense.

 

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