Quantcast
Connect with us

Media sector seeks new powers to challenge Big Tech

Published

on

Big Tech firms are clobbering traditional news organizations, media representatives told lawmakers Tuesday, asking for new authority to allow the struggling sector to team up against online platforms.

The comments came as the House Judiciary Committee opened the first in what is expected to be a series of hearings examining the dominance of Big Tech in several economic sectors.

Tuesday’s hearing sought to focus on the plight of news organizations, which have struggled to keep up with the dominance of Facebook and Google in online advertising.

“In effect, a couple of dominant tech platforms are acting as regulators of the digital news industry,” said David Chavern of the News Media Alliance, previously known as the Newspaper Association of America.

“The result of the tech platforms’ regulation of the news industry has been to siphon revenue away from news organizations.”

But Chavern said that rather than push for a breakup, Congress should pass a law giving the media sector its own antitrust exemption to better compete with Big Tech.

ADVERTISEMENT

He cited the proposed Journalism Competition and Preservation Act as “an innovative, market-oriented solution” to the problem.

“Markets work best when different parties can negotiate with one another on reasonably even footing — and where both parties have some leverage to credibly withdraw from negotiations if the other side demands unreasonable or exploitative terms,” he said.

The bill “helps remedy this imbalance by allowing news organizations to bargain collectively against dominant tech platforms.”

David Pitofsky, general counsel at News Corp, which publishes the Wall Street Journal, offered similar remarks.

ADVERTISEMENT

“If publishers could band together they might be able to use their collective leverage to bring the platforms to the negotiating table. But doing so is made impossible by the antitrust laws,” Pitofsky said.

Pitofsky said he is hopeful for “reinvigorated antitrust enforcement” but noted that this would “require years of investigation and litigation.”

“In the interim, news publishers need a fighting chance. The Journalism Competition and Preservation Act is well-designed to help restore the proper balance between content generators and content distributors.”

Gene Kimmelman of the consumer group Public Knowledge said the news sector’s woes are deep but should be resolved through market forces.

ADVERTISEMENT

“We do not believe this problem will be solved by allowing more consolidation of power, whether among platforms or media,” Kimmelman said.

“And we believe exceptions to the antitrust laws should be a tool of last resort, if they are ever used. Enabling excess market power to challenge the existing dominant platforms does nothing to address the long term need to develop market forces that promote strong local journalism.”

Report typos and corrections to [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Breaking Banner

‘Dangerous linguistic power’: A historian explains how Trump weaponizes nicknames

Published

on

Is Donald Trump the modern day Earl Long?

A three-time Louisiana governor, Long mastered the art of political ridicule seven decades ago by weaponizing nicknames. The hilarious names Long pinned on his rivals, and the rollicking stories he told about them, riveted audiences bored by puffed-up rhetoric.

While Long’s stunts may be remembered as silly hijinks, there was a sly, often deadly serious, purpose to his technique. He used it to get voters to laugh at his foes and to put them on the defensive––a place politicians never want to be. Tucked within Long’s jests were razor-sharp attacks aimed at exploiting opposition weaknesses––hidden swords inside a pea-patch cloak.

Continue Reading

Breaking Banner

Walmart got a $2.2 billion tax cut — now it’s laying off workers

Published

on

Walmart announced it will lay off hundreds of workers in North Carolina despite receiving billions in tax cuts that the Republican Party and President Trump claimed would spur job growth.

The giant retailer will lay off about 570 employees and close its corporate office near the Charlotte airport, despite signing a 12-year lease just four years earlier, the Charlotte Business Journal reported.

The work done at the Charlotte facility will be outsourced to a firm in Arkansas, according to the report.

Continue Reading
 

Facebook

Amazon, Google and Facebook warrant antitrust scrutiny for many reasons – not just because they’re large

Published

on

There’s a growing chorus of U.S. politicians, antitrust scholars and consumer watchdogs calling for stricter antitrust treatment of Amazon, Google, Facebook and other tech giants. Some even say they should be broken up.

Most recently, U.S. lawmakers launched a sweeping review to determine if these companies have become so big and powerful that they are stifling competition and harming consumers, while federal regulators are also gearing up to take action.

Continue Reading
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

 ENOUGH IS ENOUGH 

Trump endorses killing journalists, like Washington Post columnist Jamal Khashoggi. Online ad networks are now targeting sites that cover acts of violence against dissidents, LGBTQ people and people of color.

Learn how you can help.
close-link