These two Big Tech, together with TikTok (first-quarter revenue of US$500mil or RM2.3 trillion), are now the dominant players in the advertising marketplace where a large chunk of their earnings come from.
Even the largest news media companies do not make a fraction of the earnings of these tech giants. For example, the New York Times reported first-quarter earnings of US$22mil (RM101mil).
This is hardly surprising as hundreds of millions in advertising dollars are lost each year to tech giants like Google and Facebook. These digital platforms aggregate content from mainstream news sites, but do not pay for the content.
With their ability to reach billions of people effortlessly, these platforms have become the logical space for advertisers to push their products, thereby depriving media companies of a much-needed source of income.
And this has been going on for years. Big Tech has been reaping massive profits, even as media companies around the world see shrinking revenue, much of it due to the loss of advertising dollars.
Malaysia is no different. The loss of potential revenue has affected news operations in the mainstream media, resulting in closures, retrenched staff and a fight to remain sustainable.
Ironically, this comes as the country records its highest position in the World Press Freedom Index ranking 2023. We are now at No. 73 out of 180 countries, our best achievement yet, and the highest ranking among all Asean countries.
This rise up the rankings can in part be attributed to a spirit of openness practiced by the unity government since they came to power last November.
Even though there are still archaic laws in place such as the Printing Presses and Publications Act 1984, the Sedition Act 1948 and the Official Secrets Act 1972 that only serve to restrict media freedom, the latest ranking will help to boost investors’ confidence in the country.
It is therefore imperative that the government assist the Malaysian media in seeking a fair and just compensation from the Big Tech companies.
“We are only asking for a fair share of the advertising revenue that the tech giants have generated using content from media organisations in the country.
“For more than 15 years now, both Facebook and Google have been reusing our content that we have invested a lot of our resources to produce for their financial gains,” said a previous statement from the Malaysian Newspaper Publishers Association (MNPA).
Both Australia and Canada have introduced legislation to compel the Big Tech companies to compensate media practitioners.
According to the Financial Times, Australian media companies received US$146mil (RM672mil) from Facebook and Google following the introduction of laws forcing technology platforms to negotiate payments with the local media industry after a battle between Google and the country’s consumer regulator. Since then, around 30 deals between media organisations and Big Tech have been struck.
The implementation of the system has been scrutinised globally as other countries, including the US and the UK, consider introducing similar legislation to try to reset the balance between media companies and technology titans.Can Malaysia do the same? The MNPA has been actively seeking mandatory compensation for its members, but this can only be achieved through parliamentary legislation.
The discussion to compel tech giants to pay for news content is not something new and has been going on for at least two years now. But the agencies involved – the Malaysia Competition Commission (MYCC), the Intellectual Property Corporation of Malaysia (MyIPO) and the Malaysian Communications and Multimedia Commission (MCMC) – have been passing the buck and dragging their feet.
Meanwhile, the rise of fake news websites and unverified portals has gone on unabated. The amount of misinformation in cyberspace is mind-blowing, but the mainstream media stands as a bulwark against this.
The Fourth Estate is one of the most fundamental institutions in promoting a transparent and legitimate structure of governance and order in any society.
And it is precisely for this reason that the government should act to assist the mainstream media in seeking compensation from the tech giants.
The Malaysian media outlets together with various professional organisations are now standing together and demanding fair and just compensation.
The ball is now firmly at the feet of the government to act on this. As observed from news reports in Australia and France, Big Tech will regrettably only entertain fair compensation once they are compelled to by law.
A Bill that will allow fair and transparent compensation should be brought to Parliament and passed so that media companies can remain sustainable and help journalism thrive in the digital age.
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Brian Martin
Brian Martin is the managing editor of The Star.
