Italy to introduce rules to help publishers get fair payment

ROME - Italy is set to adopt rules aimed at helping publishers obtain fair payment from online giants that use their content, a draft decree spotted by Reuters showed.

The decree enacts the European copyright legislation that was approved in 2019 to help publishing houses meet the competition from dominant internet players who erode their advertising revenue and sales.

The EU rules are aimed at pushing Google and other online platforms, such as Facebook, to sign licensing agreements with publishers and other content producers.

Under the proposed legislation, which is still to be finalised, Italy's communications watchdog would be given powers to set criteria determining how much big web-based businesses should pay for using publishers' content.

This would give publishers the basis to negotiate better contractual terms.

In the absence of an agreement, either of the two sides will be able to appeal to the regulator to determine how much the online platforms should pay. The draft showed.

The decree also prevents online publishers from blocking any content pending negotiations with publishers.

The legislation is expected to be approved at a cabinet meeting on Thursday.

Before it can take effect, it needs the backing of parliament.