Internet Giants Must Pay Fairly For News: Mainichi Japan

The Japan Fair Trade Commission (JFTC) has recently compiled a report examining the agreements between news portal websites that aggregate and distribute articles, such as Japan's Yahoo News, and the newspapers and broadcasters that provide the content. When examining the concrete figures, there are significant concerns, as noted in the editorial by Mainichi Japan.

If the license fees paid to news organizations for their articles are exceedingly low, it could potentially constitute a violation of Japan's antimonopoly law. I Screenshot: Yahoo Japan

People are increasingly obtaining their news through online portals, and the report highlights that this trend may provide these companies with an advantage over traditional news organizations.

If the license fees paid to news organizations for their articles are exceedingly low, it could potentially constitute a violation of Japan's antimonopoly law.

The JFTC also delved into the profit structures of these site operators, recognizing that access to high-quality news is "essential for a thriving democracy."

The proliferation of free news on the internet has led to a series of bankruptcies in the news sector overseas. If news companies cannot receive fair compensation for their articles, they may struggle to remain in operation.

The closure of news outlets can weaken the role of journalism in holding those in power accountable.

The provision of impartial and accurate information, crucial for the public's consideration of social issues, may also suffer. The licensing fees paid by six news portal operators to news companies average 23.5% of the income generated by the portals through advertising revenue.

The average license fee per 1,000 page views amounts to 124 yen ($0.83), and depending on the specific site, advertising revenue can surpass content fees by as much as fivefold.

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