"Google Must Pay News Fees Too"... 'Korean Version of the Google Law' Soon to Be Proposed

[Asia Economy Reporter Kang Nahum] The so-called "Korean version of the Google Act," which mandates domestic news usage fees to be paid to global internet service providers such as Google and Facebook, will soon be proposed. Both ruling and opposition parties share a consensus on the purpose of this bill, raising expectations for its passage through the National Assembly.

According to political circles on the 13th, the Korean version of the Google Act consists of two amendment bills to the "Act on the Promotion of Newspapers, etc." and the "Copyright Act." The core of the bill is to expand the concept of internet news service providers to include overseas platform companies and require payment to news providers when news is used.

Kim Young-sik, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee from the People Power Party, is preparing to propose the bill and plans to submit the two amendments to the National Assembly within a few days. On the afternoon of the same day, a public hearing will be held with the Korea Journalists Association, the Korea Broadcasting Association, and others ahead of the bill's proposal.

True to its nickname as the Korean version of the Google Act, the bill targets overseas platforms such as Google and Facebook, which have mediated domestic media articles but have not paid fair compensation. Unlike domestic internet portals that have paid a certain amount by sharing advertising revenue instead of news reproduction fees, overseas platforms have effectively refused negotiations with domestic media companies on the grounds that they are not registered internet news service providers in Korea.

Lawmaker Kim explained, "Globally, as portal operators continue not to pay appropriate content fees to media companies, movements are emerging to enforce payment of news usage fees to protect their own journalism. Korea is facing the same issue, albeit with different severity, so we have prepared the amendment bill."

The obligation to pay news usage fees is a trend spreading worldwide. In February, Australia enacted the "News Media Bargaining Code," which mandates Google, Facebook, and others to pay news usage fees. It requires mandatory negotiations between digital platforms and news media and binding arbitration procedures if negotiations fail.

The EU is also promoting mandatory article usage fee payments through the "Digital Service Act" and the "Digital Market Act," which regulate antitrust behavior of IT companies.

Google and Facebook opposed these bills with threats such as "market withdrawal" and "termination of news services," but recently have shifted their stance toward paying fees and resuming news services.

The Korean government also holds a positive stance on the Korean version of the Google Act. The Ministry of Culture, Sports and Tourism recently expressed favorable opinions on the direction of amendments to the Newspaper Act and Copyright Act for revenue sharing (payment of fees) between portal operators and media companies.

However, how to establish the criteria for calculating fees remains a challenge. During discussions on news usage fee payments, there are concerns about service interruptions and blackouts due to conflicts between platforms and news providers. Kim Yoo-seok, Digital Value Director at Open Root, pointed out in his public hearing presentation, "The issue of internet news usage fees ultimately concerns the transaction fees between platforms and content. Institutional measures are needed to minimize the bargaining power gap between platforms and news content providers."

This content was produced with the assistance of AI translation services.