Evidence from Spain shows that new rights for publishers become a racketeer tax

chokehold on aggregators
Licentie

Coincidence has written a postscript to our yesterday’s post Good news! Quality journalism doesn’t need the snippet levy. A recent tariff on how much linking will be charged for revealed by the Spanish Reproduction Rights Centre (CEDRO) shows that publishers’ appetites are great and likely to ruin online access to content we need and like.

CEDRO decided that per each active user per day it wants to charge a daily rate of € 0,05044854. We can endlessly discuss if this arbitrary rate is a lot or not much per user-day. But this is where the economy of scale of 5 cents is pivotal – Menéame, a Spanish aggregator has an average of 139 thousand unique users accessing their site per day. So 5 cents scales up to a quite substantial 7+ thousand euro per day and that to an astronomic 2,56 million euro per year.

The problem is that this is 20 times as much as Menéame’s annual turnover (125 thousand euro). In short, a piece of legislation aimed at Google chokeholds smaller enterprises while reinforcing the giant’s dominant position.

What is perhaps worse, we have landed in this mess based on false assumptions: whatever affects the traffic to news content (could it be the decreasing quality of the news and proliferation of meaningless clickbait? Hmmm…) it is not the aggregators. As research shows they in fact assist users in optimizing their attention economy and in result sustain the traffic.

Based on these false assumptions the publishers want to racket sums that have nothing to do with the economic situation or the scale of operations of the aggregators in a strive to compensate an imaginary loss by ripping off those who in fact help news readership. By doing so the rightsholders resemble thugs that raid a bar and extort payments only because the bar is in their neighborhood.

Say no to the racketeer tax in EU!

Now, thanks to the European Commission’s copyright directive proposal we are facing the danger of that mess spilling all over Europe. If you feel you’d like to do something about this, write an email to Members of the European Parliament from your country to kick off article 11 from the copyright directive proposal. There is still time to stop this nonsense.

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