TL;DR:
- Google blocks access to news content in Canada as part of a five-week trial.
- This is part of a global dispute between traditional and new media, where news organizations accuse search engines and social networks of profiting from content that is not theirs.
- Governments in countries such as Australia, Britain, and Spain have passed or proposed laws to extract money from Silicon Valley and direct it to local media companies.
- Google and Facebook have established programs to support media organizations, with Google’s “News Showcase” and Facebook’s News Tab.
- However, advancements in search technology and the increasing capabilities of AI are making the complaints of publishers more legitimate.
- AI is enabling search engines to display information without referring users to external sources, even reaching behind paywalls.
- This has prompted discussions among media company lawyers, who argue that AI search companies should be required to license the content they use.
Main AI News:
On February 22nd, a five-week trial was launched that saw Google blocking access to news content for about 4% of users in Canada. The move comes as Canada’s Senate debates a bill that would require big internet companies to pay publishers for displaying links to their stories. However, Google has stated that instead of paying, it may simply block these links. Canada’s government sees Google’s actions as an act of intimidation.
This situation is just the latest development in the ongoing global dispute between traditional and new media. News organizations, which have lost most of their advertising revenue online, claim that search engines and social networks are profiting from content that does not belong to them.
Google and Facebook, who have faced the brunt of the criticism, argue that they simply display links and a few lines of text that drive traffic to publishers, who have the option to opt-out if they choose. Facebook estimates that it sends 1.9 billion clicks a year to Canadian media, worth C$230 million ($170 million) in terms of publicity.
Despite the arguments made by online platforms, governments in countries such as Australia, Britain, and Spain have passed or proposed laws to extract money from Silicon Valley and direct it to local media companies. For example, Australia’s law, passed in 2021, prompted tech companies to make payments to Australian media reportedly worth A$200 million ($135 million) in the first year of the scheme.
To prevent similar legislation in other countries, Google and Facebook have set up mechanisms for directing “support” to media companies. Google’s “News Showcase” will spend approximately $1 billion from 2020-2023 on licensing content from over 2,000 news organizations in over 20 countries. Facebook’s News Tab, in which The Economist has participated, also offers support to media companies but has recently been scaled back. Unlike Google, Facebook can function without news, which only makes up 3% of what users see in their feeds.
The global conflict between traditional media and new media continues to escalate as governments take action to ensure local news organizations receive proper compensation from tech companies. While big tech firms such as Google and Facebook argue that they only display links and a limited amount of text, they are facing legal pressure to make payments to media companies. In response, both companies have established programs to support media organizations, with Google’s “News Showcase” and Facebook’s News Tab.
However, with the advancements in search technology and the increasing capabilities of artificial intelligence (AI), the complaints of publishers against these platforms are becoming more legitimate. AI is revolutionizing the search industry, enabling search engines to display information without referring users to external sources. Bing’s AI assistant, for example, is already resolving queries and even reaching behind paywalls to provide users with the information they would otherwise need to pay for.
This has prompted discussions among media company lawyers, who argue that AI search companies should be required to license the content they use. The use of others’ material by AI is “the copyright question of our times,” according to one chief counsel at a large media company. The complaints of publishers against these platforms are no longer just ringing hollow, as they now have a real issue to address in the rapidly changing digital landscape.
Conlcusion:
The advancements in AI and search technology are rapidly changing the media landscape and causing a new battle over content licensing. Traditional media organizations are facing increased competition from search engines and social networks, which are profiting from their content. Governments are taking action to ensure that local media companies receive proper compensation from tech companies, but these efforts are being challenged by the increasing capabilities of AI.
As AI becomes more advanced, search engines are able to display information without referring users to external sources, even bypassing paywalls. This has led to discussions among media company lawyers, who argue that AI-search companies should be required to license the content they use. The use of others’ material by AI is becoming a major issue in the digital landscape and is likely to have a significant impact on the media market in the coming years.
