World

Google accuses Microsoft of ‘distraction’ in paid news content row

Debate on matter shouldn’t be ‘derailed by naked corporate opportunism’, says Google official

Updated 5 years ago · Published on 13 Mar 2021 4:30PM

Google accuses Microsoft of ‘distraction’ in paid news content row
The Microsoft president blames Google’s business model for ‘devouring’ ad revenue on which news groups rely. – AFP pic, March 13, 2021

SAN FRANCISCO – Google yesterday took aim at Microsoft, accusing its rival of “distraction” for siding with governments seeking to force tech platforms to pay media organisations for news content.

In a blog post, Google argued that Microsoft is trying to divert attention from a potentially devastating attack on Exchange email servers by hackers taking advantage of software vulnerabilities.

The comments come amid a heated battle of words over efforts in Australia and elsewhere to require digital services to negotiate payments for news content.

Google and Facebook have resisted mandatory payments, while Microsoft has taken a more collaborative stance.

Microsoft president Brad Smith, in a letter to a congressional sub-committee hearing, blamed Google’s business model for “devouring” ad revenue on which news groups rely.

Google senior vice-president of global affairs Kent Walker fired back in the blog post, saying of Microsoft: “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.

“This important debate should be about the substance of the issue, and not derailed by naked corporate opportunism.”

In his letter, Smith lauded the role news organisations play in defending democracy, and contended that the “internet gutted the already ailing local news business by devouring advertising revenue and luring away paid subscribers”.

Microsoft has lobbied for other countries to follow Australia’s lead in calling for news outlets to be paid for stories published online, a move opposed by Facebook and Google.

“News today is part of the technology ecosystem, and all of us who participate in this ecosystem have both an opportunity and responsibility to help journalism flourish,” said Smith.

Backers of Google and Facebook have argued that mandatory payments for news links will fundamentally change the way the internet works, and ultimately, be detrimental to free online services. – AFP, March 13, 2021

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