British Newspapers Wants Facebook Tax

September 26, 2018 Taxation in UK

media license feeLONDON – British newspapers need to take back some of the money flowing to Facebook and Google, according to an industry body.

On September 25th the UK News Media Association (NMA) issued a press release calling for large internet companies to pay a license fee to fund journalism in the UK.

The NMA is claiming that “tech giants” such as Google and Facebook are seeing an increase in revenues from advertising derived by hosting and displaying articles and journalism made by UK journalist.

As the advertising revenues is “…now flowing to the global search engines and social media companies who make no meaningful contribution to the cost of producing the original content from which they so richly benefit,” revenues for publishers is plummeting.

In the 10 years between 2007 and 2017, the size of the newspaper industry in the UK has shrunk from GBP 6.8 billion to GBP 3.6 billion.

The NMA wants to see online advertising giants pay a levy or license fee for posting British journalism, with the arising revenues being used to support the national news industry.

Further, the NMA wants to see greater responsibilities placed on the tech companies to ensure that the contents they allow on their platforms is legitimate and true, and not “fake news”.