The government of the Republic of Ireland should seriously consider following Australia’s bold move to require tech giants such as Facebook and Google to share advertising revenue with local news outlets, according to Irish Prime Minister Leo Varadkar.
His comments, made on Friday, highlight growing concern among governments worldwide about the disproportionate power of digital platforms and the resulting impact on traditional media.
In his statement, Varadkar said that companies like Google, Facebook, and Twitter “are sort of free riders on costs incurred by other people.” This pointed critique echoes a common sentiment shared by many governments and media organisations: that tech businesses reap significant advertising profits by distributing news content created and funded by local media, without offering fair compensation.
Ireland, which hosts the European headquarters of many of these tech giants, including Google and Facebook, is in a unique position. While these multinational companies provide significant employment and economic benefits to the Irish economy, there is a growing recognition of the need to balance these economic contributions with fair practices that support the country’s journalism sector.
Varadkar’s comments come at a time when Ireland is in political transition, with his party engaged in talks with other parties to form a new government. This period of change could present an opportunity to rethink the country’s approach to regulating Big Tech and to consider policies that better support the sustainability of local journalism.
Australia’s approach, which Varadkar referenced, is viewed by many as a trailblazing example of how governments can address this imbalance. Under Australia’s model, known as the News Media Bargaining Code, digital platforms like Google and Facebook are required to negotiate with local media outlets to determine a fair payment for news content. The framework was developed by Australia’s competition regulator and aims to ensure that media organisations are adequately compensated for the value their content generates for digital platforms.
While the Australian plan faced fierce opposition from tech companies initially, Facebook even temporarily blocked news content for Australian users in 2021, it ultimately resulted in agreements that have seen millions of dollars flow to local news organisations. This move has been hailed as a lifeline for struggling media outlets, which have faced declining revenues and job cuts in recent years.
For Ireland, the potential adoption of a similar model would signal a major shift in how it regulates digital platforms and supports local journalism. Ireland’s news media industry, like many around the world, has been hit hard by the shift to digital advertising, with tech giants capturing the lion’s share of ad revenue that once flowed to newspapers and broadcasters.
Varadkar’s support for exploring such a policy in Ireland suggests a recognition of the broader social role that journalism plays in maintaining a healthy democracy. Local news outlets are crucial for informing communities, holding power to account, and fostering civic engagement. Without sustainable revenue models, many of these outlets risk closure or significant cutbacks, leading to news deserts and reduced media diversity.
Of course, any move to implement a revenue-sharing model in Ireland would need careful consideration. Ireland’s economy is heavily reliant on the tech sector, and any regulatory move would need to strike a balance between protecting the viability of local journalism and maintaining a supportive environment for tech investment and innovation.
The European Union has also been active in this area, with its Digital Markets Act and Digital Services Act aiming to tackle some of the issues around platform power and fair competition. Ireland’s next steps would need to align with these broader EU initiatives to ensure consistency across the region.
Nonetheless, Varadkar’s remarks suggest that the Irish government is open to taking a fresh look at how digital platforms operate in the country and how they can contribute more equitably to the broader media ecosystem. This is a positive step toward recognising that while tech giants have revolutionised how information is shared, they must also play a fair role in supporting the quality journalism that underpins a functioning democracy.
As discussions continue in the formation of a new government, this topic is likely to remain high on the agenda. The debate in Ireland will be closely watched by media groups and digital platforms alike, and could set an important precedent for how smaller countries can ensure that the digital transformation of news benefits not just the tech giants, but society as a whole.
The team at Platform Executive hope you have enjoyed the article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Conor Humphries. Editing by Catherine Evans.