Google, Facebook could pay European news organisations for their content

The proposed rules are to support authors, musicians, record labels, broadcasters and publishers who create original content and dilute the powers of digital platforms.

The move is likely to mitigate collapsing advertising revenues affecting media companies in Europe. New publishers would receive exclusive rights to their content which is made available online to the public. Google’s news service, Google News would have to agree terms with news organisations to show extracts of their articles.

EC spokesperson Christian Wigand, said on Thursday: “Let’s be clear: granting such rights to news publishers would not affect the way users share hyperlinks on the internet. It would recognise their role as investors in content.”

Neighbouring rights, a protection for performers and broadcaster, already exists but the EC wants to widen it to include publishers and news organisations.

The commission said: “The sustainability of publishing industries in the EU may be at stake, with the risk of further negative consequences on media pluralism, democratic debate and quality of information.”

There is no compulsion for news organisations to make Google pay and may not in order to attract readers. Spain tried to enforce a similar copyright law, but the technology giant shut down Google News in response and in Germany, publishers decided not to charge Google after experiencing low traffic numbers.

Copyright reform is the latest issue to rile American multinationals from Brussels. On Wednesday the US Treasury department criticised the EU for investigating Apple for alleged tax avoidance, which could see the company pay billions in back taxes.

Shares in Alphabet, Google’s parent company, were up 0.64% to 796.86 cents at 1106 GMT and shares in Facebook were up 0.75% to 124.82 cents at 1108 GMT.