After Canada, Malaysia is considering a regulatory framework to oblige Google and Meta to compensate news publishers for profiting off their content on social media platforms, according to a statement by the Malaysian Communications and Multimedia Commission (MCMC).
The MCMC held a discussion with Meta and Google officials to “address challenges posed by online platforms” this week. The proposed regulations will make it mandatory for tech giants to pay publishers for news content that generates advertising revenue and engagement on online platforms. A meeting with TikTok has also been scheduled regarding the legislation.
According to the statement, Malaysia’s regulatory framework concerning compensation for news will be similar to those adopted by Australia (Mandatory News Media Bargaining Code) and, more recently, Canada (Online News Act). Other online challenges discussed in the meeting included the dissemination of harmful content such as child sexual abuse material, impersonation, and disinformation.
“In emulating the example of both Australia and Canada, KKD’s [Ministry of Communications and Digital] and MCMC’s engagement with online platforms demonstrate their commitment to digital market challenges,” reads the statement. “Among these challenges are the imbalances in income for Traditional Advertising Expenditure (ADEX) between digital platforms and local media to ensure fair compensation for news content creators.”
The development arrives amid the Canadian government’s efforts to placate Meta, the owner of leading social media platforms such as Facebook and Instagram. After Meta blocked links to news articles across its online platforms in the Canadian market over the Online News Act, the government unveiled a framework for the implementation of the law and provided assurances of addressing concerns raised by Meta and Google.
The draft rules, however, failed to convince Meta, and the suspension of news content continues in the country. Google, on the other hand, stated that it would review the proposed regulations to assess whether they resolved the “serious structural issues” with the contentious journalism bargaining act. Google’s parent Alphabet has already warned of removing news from its digital services if the Online News Act is implemented in December.
Both Meta and Google have raised objections to the law, with Meta claiming that it makes only a fraction of advertising revenue from news content and that featuring news content on social media platforms benefits publishers with reach and visibility instead. Google has termed the legislation “unworkable” for its business model, arguing it is a “wrong approach to support journalism” by the Canadian government.
Other markets to propose or implement similar legislation include the US and Australia. In December 2021, Meta threatened to take down news in response to the Journalism Preservation and Competition Act (JPCA) in the US. Australia, which is the first country to introduce such legislation, faced complete removal of news content in 2021. This was followed by several amendments to the law and a series of negotiations between Meta and Australian media companies, which eventually resulted in news being restored across Meta platforms.
