TOI's Mohit Jain advocates cautious govt intervention for fair payments from big tech to publishers

New Delhi: India is considering a new law to ensure major tech companies properly compensate digital news publishers for using their content and sharing ad revenue fairly and transparently. This proposed legislation will complement the forthcoming Digital Competition Bill, which has already undergone public consultation.

Commenting on the development, Mohit Jain, executive director and board member of the Times of India and former president of the INS, offered a cautious perspective. While acknowledging the publishers' need for a level playing field, he warned against hasty government intervention. “Publishers are seeking a stronger position against big tech, but they are also wary of government overreach. It's a delicate balance that requires careful consideration,” he said.

India's approach to regulating the digital space is being closely watched globally. Countries like the European Union have already implemented the Digital Markets Act (DMA), imposing stringent rules on large tech platforms. Australia and Canada have also taken steps to address the imbalance between news publishers and tech giants.

“We cannot ignore the experiences of other countries,” he said. “While there are lessons to be learned from the EU's Digital Markets Act, we must adapt the regulations to suit India's unique digital landscape.”

Jain further emphasised the challenges publishers face in standing up to tech giants individually. “Publishers, as individuals, are not as strong to stand against big tech. Consolidating their bargaining power might be an option, but inviting government intervention comes with its own set of concerns.”

Across the world, publishers and governments are forcing technology firms and social media platforms to share revenue with content creators and publishers. In India, too, the clamour for the same is growing. DNPA and INS have been taking up the issue with the government on a regular basis for a long time now. 

This measure was left out of the Digital Competition Bill spearheaded by the Ministry of Corporate Affairs. The Bill's objective is to establish guidelines for major tech companies to foster fair competition in digital markets.

Earlier in June 2024, the government held exploratory talks with online news publishers and other related departments on the demand of the Digital News Publishers Association (DNPA) for a revenue-sharing mechanism with big tech firms such as Google and Meta for using their content. The meeting was chaired by Information and Broadcasting Secretary Sanjay Jaju where representatives from the DNPA and other government departments were present.

While the DMA has been criticised for its broad scope and potential negative impact on innovation, it has also set a precedent for regulating the digital economy. However, India's unique digital landscape presents distinct challenges. The country boasts a rapidly growing internet user base, with over 820 million internet users as of 2023, and a thriving startup ecosystem. 

India's consumer-based digital economy is projected to reach a whopping $800 billion by 2030, a tenfold increase from 2020. Any regulatory changes could have far-reaching consequences for both domestic and international tech companies operating in the Indian market.