Monday, March 15, 2021

Google Slams Microsoft For Supporting 'Pay for Content'


Alphabet Inc.’s Google attacked Microsoft Corp. for rallying support for legislation that would give news publishers more power to negotiate with technology platforms for payment for content, Bloomberg reports

Google said in a blog post on Friday that Microsoft is engaging in “naked corporate opportunism” by appearing before Congress to back a proposal that would allow media organizations to band together to negotiate with Google and Facebook Inc.

“They are reverting to their familiar playbook of attacking rivals and lobbying for regulations that benefit their own interests,” wrote Google’s chief legal officer Kent Walker. “They are now making self-serving claims and are even willing to break the way the open web works in an effort to undercut a rival.”

Google’s statement came ahead of a hearing Friday held by the House antitrust panel that’s considering legislative proposals aimed at reining in the power of Google and Facebook, and fostering competition in digital markets. The committee, led by Democratic Representative David Cicilline of Rhode Island, last fall released the findings of a 16-month investigation that accused tech platforms of abusing their dominance.

Friday’s hearing was focused on legislation introduced in the House and Senate this week that would give news publishers an antitrust exemption to band together to negotiate with the tech platforms.

“It’s clear that we must do something in the short term to save trustworthy journalism before it’s lost forever,” Cicilline said. “This bill is one support measure, not the answer for ensuring the long-term health of the news industry. We need an all-of-the-above approach to save journalism and to take out monopoly power.”

Microsoft President Brad Smith testified in favor of the news media bill. He lamented the closing of small newspapers in communities across the country, and blamed tech companies for siphoning advertising revenue from news organizations. He placed particular blame on Google’s control over the digital advertising market.

Microsoft is pushing lawmakers around the world to approve measures to force the tech platforms to pay news outlet for content. The software maker publicly backed a law in Australia that prompted Facebook last month to impose a news blackout on its site, and has called for a similar measure in Europe.

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