Microsoft Corporation (NASDAQ:MSFT) Tells Alphabet Inc (NASDAQ:GOOGL)’s Google And Facebook, Inc. (NASDAQ:FB) To Pay For News: Requests US Intervention With A New Law

Microsoft Corporation (NASDAQ:MSFT) says Alphabet Inc (NASDAQ:GOOGL)’s Google and Facebook, Inc. (NASDAQ:FB) should pay for the news.

The company requests the US to implement its version of the clever proposal brought in by the Australian Government to compensate the publishers for incomes generated on their platforms using news stories.

Brad Smith, CLO, and President of Microsoft said that the US should not obstruct Australia’s proposal that strengthens democracy. It says the tech companies should support the free press.

Google fights the law in Australia

Google is fighting the new law introduced by Australia. It threatened to shut down the search engine if that nation enacts the proposal. Facebook considers a proposal to prevent Australians from sharing the news stories using their accounts.

Supports democratic speech         

Satya Nadella, CEO of Microsoft, and Brad approached the Prime Minister of Australia to make Bing a default search engine. It agrees to pay for the news publishers and takes its share. Microsoft backs healthy news industry promotion and supports democratic speech.

The new approach helps Microsoft to improve its popularity and market share in nations where it failed to gain an advantage. Google maintains a lion share in Australia whereas Microsoft stands with a meager 5% share.

Microsoft targets its rivals

It is not the first instance that Brad aimed guns at rivals. Over gaming issues last year, the company batted for the examination of App store policies of Apple by antitrust regulators. Facebook also makes the lives of publishers, who struggle to make money by publishing their stories on its platform and reach users, miserable.

The social media giant uses different tactics to deny the share of publishers from their news stories on its platform. Chairman of News Corp, Rupert Murdoch, who born in Australia, in 2018 asked Facebook to make payment for publishers for using their news.

The Australian proposed law makes Alphabet’s Google and Facebook to pay for the news. Under the current terms, Bing is not paying for the news. However, Microsoft pays for news through a licensing deal for its MSN. Microsoft said it has paid over $1 billion in the last 7 years.

Google also pays for curated news content to select media outlets. The search giant earmarked over $1 billion to pay for the program for the first three years.

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Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

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