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New Statesman
9 hours ago
- Business
- New Statesman
Artificial Intelligence is coming for creatives, the question is how to make it fair
Photo by Shutterstock We have never lived in a moment in history before with as much written 'content' available to us as now. However, the livelihoods of writers have become more precarious. Over the past 15 years, the average earnings for writers have fallen by 66 percent to £7000 a year. Freelance writers still struggle to get fair contracts for their work and now have the potential threat of generative AI to the sustainability of their profession. These were the challenges discussed at a roundtable titled 'How do we create a sustainable future for freelance journalism?' convened by the New Statesman, sponsored by the Authors' Licensing and Collecting Society (ALCS) and chaired by Press Gazette editor Dominic Ponsford. The discussion was held under Chatham House rules, so the identity of contributors will be anonymised throughout. The opening speaker talked about their experience as a journalist and freelance journalist and added the point that there are broader threats to media, highlighting the closure of Voice of America and cuts to the BBC World Service. They highlighted the idea of a Freelance Commissioner to champion freelancers and represent them in government, something that has been a longstanding campaign demand from the ALCS. Ed. Soon after the Roundtable, the government announced a Freelance Champion as part of the Creative Industries Sector Plan. 'We are still in a world in transition where being a journalist is a very difficult career to pursue if you want to make a living,' said one attendee. They pointed out that there have been efforts by government and parliament to address the pressures facing journalism, including the creation of the Local Democracy Reporting Service and the Digital Markets, Competition and Consumers Act 2024. However, they added, there needs to be more done in order to ensure the vital role of journalism in supporting democracy and that the competition authorities need to take more account of freelancers when they are enforcing the law with Big Tech. 'Good luck if you're a young person, or if you're from a diverse community and are trying to break into these professions,' said one person, adding that, 'unless you've got independent wealth or connections, it's very difficult.' 'The pressure on the employer has been increasingly towards engaging freelancers because it basically costs less,' an attendee said. They speculated that freelancers may, in the short-term, be able to deploy AI to help them get money owed to them, but that in the longer-term there needs to be a collective agreement and collective society to get that money in and distributed to creators. One freelancer present outlined the challenges they faced in keeping track of what happens to their work, how it is used and securing payment for that. Some types of freelancers, such as photographers, are in a better position to ensure that control. They added that graduates are more likely to need to freelance at the start of a career in journalism, but working without the support of things such as sick pay is not an option for many people, which in turn feeds into problems of underrepresentation in journalism. 'Our rates are not going up, but our costs are up, and [there is a] cost of living crisis, we are stuck, and that's why we're seeing so many people just reaching this crunch, where they're taking that decision to leave the industry,' they said. Subscribe to The New Statesman today from only £8.99 per month Subscribe Another participant highlighted the specific financial problems facing freelance journalists who work on long-term investigations and have to pay for their own equipment, training, and associated costs. 'If you're an investigative freelance journalist, the infrastructure isn't really there,' they said. An attendee outlined the challenges facing freelance journalists at different career stages. For younger journalists there is a 'perpetual internship culture' that prevents them establishing themselves on a topic or area. Established journalists rarely make enough from journalism alone to make a living and so have to develop a portfolio of other types of work. Journalism has also become centralised, depriving opportunities for freelancers based outside of London. 'There's not a single publication that has been transparent about the deals that they have struck around AI and what they're charging for their information in news to be used,' commented one person. They said that, against that power, it may take a long time for freelancers to be in a position to challenge it themselves. They added that there was an increasingly blurred line between journalists and influencers who comment on the news. 'What we actually need as freelancers, we need the copyright laws that already exist strengthened and made more accessible for us,' an attendee said. Currently, they said, their only recourse is court, which would carry a huge financial risk if the was unsuccessful. Applying that to generative AI would be even more challenging for them. A speaker from the tech industry responded that less than one percent of publishers have struck any type of deal with AI companies to use their content. They said they were 'disappointed' in how the industry has thus far failed to come together to come up with a solution to these problems. 'We invented our system to get to that collective action, to have an independent attribution model that could be integrated,' they said. However, they said it was really difficult to try and make agreements with all the large number of rights holders, but they were optimistic that this could be resolved with collective action. 'What we are creating is an AI data licensing marketplace, matching rights holders with AI companies who wants to license that,' explained another tech representative. They agreed that there needed to be collective action and a product solution to the challenge of attribution and licensing. They added that the use case is really important, as they are critical of how the current deals in place are opaque, between big tech and big media, and are not licensing for training. They continued that there are a set of AI developers who are mining data for specific use cases that need to be enabled too. For news, they added, revenues were traditionally made up of advertising, readers and licensing, and this is very much about bringing licensing into the 21st century. They felt efforts in other countries had yet to produce a sustainable solution, but that there was learning from them as to how 'the value of the concept is important, getting the right relationships is important, doing that structure is important.' An attendee explained that the ALCS and the NUJ have recently worked together to create SCOOP in order to offer genuinely beneficial collective agreements between those representing freelance journalists and companies securing commercial returns from the online secondary use of their works, including news scraping and training AI. Attendees did feel there was an important place for legislation, and an imminent need for it. One attendee highlighted that Germany, Australia and New Zealand have laws that have enabled collective bargaining, and that Europe is ahead on protections on both AI and the digital distribution of content. Another person highlighted the importance of getting the incentive structures right for tech companies, so that they can be compelled to comply with rules, for example, on attribution. 'A lot of it is to do with politics, not necessarily mechanisms, but the political context which they [policymakers] are seeing the future,' said one person. They added that while legislators around are keen to regulate AI, it is still one among many competing priorities. 'We will struggle if we wait for specific regulation. I think we have to try voluntary measures, but I think we're going to need regulatory backup,' added another attendee. They pointed to collective licensing models, which the ALCS and others are already part of, as a solution for remunerating creators through a transparent and non-profit organisation. 'In order to get the right treatment, we need to get the right diagnosis, and before that, we need to identify the symptoms,' an attendee observed, 'we as freelancers, have different symptoms to news organisations. We really need to find those better before we work out what the treatment is' It is clear that AI technology will continue to be developed and deployed. There are already some solutions that can help creators get the remuneration and value they deserve, but in the medium and longer term there need to be larger policy interventions to regulate the technology and ensure quality and reliable information is available to citizens. That could include strengthening copyright laws, taxes on technology companies to fund specific services such as public service broadcasting, and regulation to support collective bargaining between creators and tech companies. Related
Business Insider
09-07-2025
- Business
- Business Insider
British Antitrust Case Threatens to Derail Alphabet's (GOOGL) Monopoly
Alphabet (GOOGL) stock has remained resilient despite facing a major antitrust challenge in the United Kingdom. In late June, the UK's Competition and Markets Authority (CMA) issued a provisional decision to designate Google with 'Strategic Market Status' (SMS) under the Digital Markets, Competition and Consumers (DMCC) Act—part of a broader, escalating effort to rein in its market dominance. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Although these regulatory developments have added some uncertainty, investors appear largely unfazed. Alphabet's core business remains strong, and the continued momentum of Google Cloud and YouTube, combined with significant investment in artificial intelligence (AI), positions the company well for long-term growth. Given its fundamental strength and ability to weather regulatory pressures, I remain Bullish on the stock's long-term prospects. Regulators Aim to Relinquish Google's Grip on Search The UK represents roughly 10% of Alphabet's search revenue—a meaningful share, though not one that poses an existential threat to the company's overall business. Still, the UK's regulatory efforts are significant. Following its provisional designation of Google as having 'Strategic Market Status' (SMS), the Competition and Markets Authority (CMA) is expected to issue a final decision by the end of 2025. If the designation is upheld, the CMA will introduce a tailored set of conduct requirements for Google. These could include mandates such as implementing 'choice screens' for search engines and enforcing fairer ranking practices, potentially reshaping how Google operates in the UK market. Choice Screens Threaten Google's Search Dominance Google has long spent billions of dollars annually to secure its position as the default search engine on smartphones and web browsers. However, the proposed implementation of 'choice screens'—which would present users with a selection of alternative search engines such as Bing or DuckDuckGo—could disrupt that model. These screens may eventually include AI assistants, such as Google's own Gemini, further expanding user options. Such a shift could have immediate financial implications for Google. Reduced default usage could lead to a decline in search traffic, and by extension, a decrease in advertising revenue. Additionally, it poses a broader threat to Google's tightly integrated ecosystem—spanning Chrome, Android, and YouTube—by making it easier for users to explore services outside of Alphabet's platform. When considering the broader perspective, Alphabet's advertising revenue constitutes a hefty proportion of its total revenue, according to TipRanks data. Google Navigates Antitrust While Defending AI and Search Google is cooperating with UK regulators, albeit reluctantly, striking a balance between engaging in negotiations and actively shaping public and political perception by emphasizing perceived benefits of its services, such as how AI Overviews can help users discover local businesses. The company is no stranger to antitrust scrutiny. The European Union has already faced several high-profile cases resulting in billions of dollars in fines. Meanwhile, regulatory pressure is also mounting in the U.S. In April, the Department of Justice concluded that Google had 'harmed Google's publishing customers, the competitive process, and, ultimately, consumers of information on the open web.' Alphabet's Financial Fortress: Strength Amid Scrutiny Despite ongoing regulatory scrutiny around its search and advertising operations, Alphabet's core business remains exceptionally strong. In the first quarter of 2025, GOOGL reported revenue of $90.23 billion, marking a 12% year-over-year increase. Operating margins also improved, rising from 32% to 34%. Google Services—including Search and YouTube ads—continues to be the company's primary revenue driver, generating $50.7 billion in the quarter. Meanwhile, Google Cloud is emerging as a key profit engine. The Cloud division posted $12.3 billion in revenue, up 28% year-over-year, with operating income jumping to $2.18 billion—more than double the $900 million recorded in Q1 2024. Alphabet also maintains a robust financial position, with $95 billion in cash and short-term investments. This enables it to make aggressive investments in future-facing technologies. In Q1 alone, the company spent $17.2 billion on capital expenditures, primarily directed toward expanding its data center infrastructure to support growth in Cloud and AI services. From a valuation standpoint, Alphabet trades at a Price-to-Earnings (P/E) ratio of 20, which is roughly in line with the median for the Communication Services sector. This is notable given Alphabet's superior growth and profitability, suggesting the market may be tempering expectations or pricing in regulatory risks. Is Alphabet a Buy, Sell, or Hold? On Wall Street, GOOGL boasts a Strong Buy consensus analyst rating, based on 27 Buy, nine Hold, and zero Sell ratings over the past three months. GOOGL's average price target of $201.16 implies an ~13% upside potential over the next twelve months. Analyst Brian Nowak of Morgan Stanley (MS) has issued a Buy rating on GOOGL with a price target of $185. Among a few reasons for optimism, he highlighted the potential partnership between OpenAI and Google Cloud. The analyst noted: 'This move is seen as a significant endorsement of Google's AI infrastructure capabilities, which have been developed over the past decade. The partnership not only underscores Google's leading position within the ASIC ecosystem but also suggests a potential acceleration in Google Cloud's growth.' GOOGL Remains a Long-Term Buy Despite Regulatory Headwinds In conclusion, despite increasing regulatory pressure, Alphabet's strong business fundamentals, dominant market position, and solid financial footing offer considerable resilience against long-term disruption. Importantly, the company is well-positioned to capitalize on advancements in artificial intelligence—an opportunity that could fuel substantial growth beyond its core search and advertising operations. While it's essential to monitor ongoing regulatory developments, I remain Bullish on GOOGL's long-term prospects.
Time of India
26-06-2025
- Business
- Time of India
UK politics blunts antitrust action against Google
Britain's competition regulator has finally come up with a plan to control Google's huge search business, but a shift in the political wind in favour of big tech and the money it invests makes it more of a bark than a bite. The Competition and Markets Authority spent years setting up a regime to intervene in the operations of tech giants such as Google, Apple and Amazon, saying it needed special expertise and powers to drive competition in the digital economy. But just as it received new powers, Britain's Labour government said its need to grow the economy meant tough regulation was now out. The CMA, chaired by a former Amazon executive, has touted a targeted approach as the way to meet its goal of reining in big tech without throttling investment from an industry that has spent tens of billions of pounds in Britain. On Tuesday, it proposed designating Google as having "strategic market status" in search, giving it the power to impose conditions on the U.S. tech firm such as changing the way it ranks search results or offering users more choice. Competition experts said the designation was no surprise, coming long after similar moves in the United States and the European Union. "Everyone has been at the search rodeo for years, there are EC (European Commission) decisions, U.S. judgements," Cristina Caffarra, a competition economist, said. "What the CMA is doing is purely performative." Nonetheless, the CMA's first designation is being closely watched by tech groups, lawyers, and business owners to see how it operates in the new political climate. In announcing its proposals, CMA Chief Executive Sarah Cardell was careful to stress its "targeted and proportionate actions" to regulate a sector innovating at breakneck speed via artificial intelligence, and mindful of the political pressure. Lawyer Ronan Scanlan, a partner at Steptoe International and former deputy director at the CMA, said Britain's Digital Markets, Competition and Consumers Act gave the CMA broad powers, but in practice it didn't have the political capital to make grand interventions. "The DMCC Act, which was billed as this revolutionary new tool that the CMA could wield, has arrived three years too late and is becoming a bit of an albatross around its neck," he said. "It's up against huge players like Google, Apple, Amazon, with a lot of political connections, and now - in a new political reality - somehow has to try to extricate itself with the minimum amount of damage." The CMA's delicate balancing act is made harder by U.S. President Donald Trump's muscular defence of U.S. business interests, and Scanlan said the regulator would want to see what would happen with Google there. Tougher proposals Some of the measures the CMA is proposing, such as choice screens for consumers to easily opt for alternative search engines, have been around for decades. Others, such as changing the ranking of results to limit Google favouring its own services, could have more impact if they are confirmed in the CMA's final decision in October. Tom Smith, a competition lawyer at Geradin Partners and a former CMA legal director, said there was a question mark over political support for some of the regulator's tougher proposals, but thought it was trying to stick to its guns. "Given the new context, it's still implementing the regime properly," he said, adding that the U.S. Department of Justice had proposed measures that could lead to a breakup of Google, particularly in its search and advertising businesses. "The idea that the CMA is going too far by putting in a choice screen, it's quite ludicrous." Despite that, Alphabet-owned Google warned it may not bring new features and services to Britain if the regulator goes ahead with the proposals, and said "proportionate, evidence-based regulation" was needed if Britain was to grow its economy. Google, which employs around 7,000 people in Britain, accounts for more than 90% of all general search queries in the country, with more than 200,000 businesses relying on its search advertising to reach their customers. But according to submissions to the CMA from the likes of flights and hotel website Skyscanner and the recommendation platform Checkatrade, that dominance may have enabled it to favour its own services over their offerings, and they want regulatory intervention. Silicon Valley has been wary of the CMA since 2023, when it blocked Microsoft's $69 billion acquisition of the "Call of Duty" maker Activision-Blizzard. Having sparked fury from the U.S. companies, it then tore up its own rule book to approve the case after Microsoft made some changes. Its second investigation under its new powers is examining mobile operating systems, targeting Google and Apple. Previous CMA investigations had pointed to Amazon as the subject of the third strategic market status investigation that was due to be announced this summer. On Tuesday, however, the CMA pushed the third case back to next year.
Time of India
25-06-2025
- Business
- Time of India
UK politics blunts antitrust action against Google
Academy Empower your mind, elevate your skills Britain's competition regulator has finally come up with a plan to control Google's huge search business, but a shift in the political wind in favour of big tech and the money it invests makes it more of a bark than a Competition and Markets Authority spent years setting up a regime to intervene in the operations of tech giants such as Google, Apple and Amazon, saying it needed special expertise and powers to drive competition in the digital just as it received new powers, Britain's Labour government said its need to grow the economy meant tough regulation was now CMA, chaired by a former Amazon executive, has touted a targeted approach as the way to meet its goal of reining in big tech without throttling investment from an industry that has spent tens of billions of pounds in Tuesday, it proposed designating Google as having "strategic market status" in search, giving it the power to impose conditions on the U.S. tech firm such as changing the way it ranks search results or offering users more experts said the designation was no surprise, coming long after similar moves in the United States and the European Union."Everyone has been at the search rodeo for years, there are EC (European Commission) decisions, U.S. judgements," Cristina Caffarra, a competition economist, said. "What the CMA is doing is purely performative."Nonetheless, the CMA's first designation is being closely watched by tech groups, lawyers, and business owners to see how it operates in the new political announcing its proposals, CMA Chief Executive Sarah Cardell was careful to stress its "targeted and proportionate actions" to regulate a sector innovating at breakneck speed via artificial intelligence, and mindful of the political Ronan Scanlan, a partner at Steptoe International and former deputy director at the CMA, said Britain's Digital Markets, Competition and Consumers Act gave the CMA broad powers, but in practice it didn't have the political capital to make grand interventions."The DMCC Act, which was billed as this revolutionary new tool that the CMA could wield, has arrived three years too late and is becoming a bit of an albatross around its neck," he said."It's up against huge players like Google, Apple, Amazon, with a lot of political connections, and now - in a new political reality - somehow has to try to extricate itself with the minimum amount of damage."The CMA's delicate balancing act is made harder by U.S. President Donald Trump's muscular defence of U.S. business interests, and Scanlan said the regulator would want to see what would happen with Google of the measures the CMA is proposing, such as choice screens for consumers to easily opt for alternative search engines, have been around for such as changing the ranking of results to limit Google favouring its own services, could have more impact if they are confirmed in the CMA's final decision in Smith, a competition lawyer at Geradin Partners and a former CMA legal director, said there was a question mark over political support for some of the regulator's tougher proposals, but thought it was trying to stick to its guns."Given the new context, it's still implementing the regime properly," he said, adding that the U.S. Department of Justice had proposed measures that could lead to a breakup of Google, particularly in its search and advertising businesses."The idea that the CMA is going too far by putting in a choice screen, it's quite ludicrous."Despite that, Alphabet-owned Google warned it may not bring new features and services to Britain if the regulator goes ahead with the proposals, and said "proportionate, evidence-based regulation" was needed if Britain was to grow its which employs around 7,000 people in Britain, accounts for more than 90% of all general search queries in the country, with more than 200,000 businesses relying on its search advertising to reach their according to submissions to the CMA from the likes of flights and hotel website Skyscanner and the recommendation platform Checkatrade, that dominance may have enabled it to favour its own services over their offerings, and they want regulatory Valley has been wary of the CMA since 2023, when it blocked Microsoft's $69 billion acquisition of the "Call of Duty" maker Activision-Blizzard. Having sparked fury from the U.S. companies, it then tore up its own rule book to approve the case after Microsoft made some second investigation under its new powers is examining mobile operating systems, targeting Google and CMA investigations had pointed to Amazon as the subject of the third strategic market status investigation that was due to be announced this summer. On Tuesday, however, the CMA pushed the third case back to next year.
Yahoo
25-06-2025
- Business
- Yahoo
Analysis-UK politics blunts antitrust action against Google
By Paul Sandle LONDON (Reuters) -Britain's competition regulator has finally come up with a plan to control Google's huge search business, but a shift in the political wind in favour of big tech and the money it invests makes it more of a bark than a bite. The Competition and Markets Authority spent years setting up a regime to intervene in the operations of tech giants such as Google, Apple and Amazon, saying it needed special expertise and powers to drive competition in the digital economy. But just as it received new powers, Britain's Labour government said its need to grow the economy meant tough regulation was now out. The CMA, chaired by a former Amazon executive, has touted a targeted approach as the way to meet its goal of reining in big tech without throttling investment from an industry that has spent tens of billions of pounds in Britain. On Tuesday, it proposed designating Google as having "strategic market status" in search, giving it the power to impose conditions on the U.S. tech firm such as changing the way it ranks search results or offering users more choice. Competition experts said the designation was no surprise, coming long after similar moves in the United States and the European Union. "Everyone has been at the search rodeo for years, there are EC (European Commission) decisions, U.S. judgements," Cristina Caffarra, a competition economist, said. "What the CMA is doing is purely performative." Nonetheless, the CMA's first designation is being closely watched by tech groups, lawyers, and business owners to see how it operates in the new political climate. In announcing its proposals, CMA Chief Executive Sarah Cardell was careful to stress its "targeted and proportionate actions" to regulate a sector innovating at breakneck speed via artificial intelligence, and mindful of the political pressure. Lawyer Ronan Scanlan, a partner at Steptoe International and former deputy director at the CMA, said Britain's Digital Markets, Competition and Consumers Act gave the CMA broad powers, but in practice it didn't have the political capital to make grand interventions. "The DMCC Act, which was billed as this revolutionary new tool that the CMA could wield, has arrived three years too late and is becoming a bit of an albatross around its neck," he said. "It's up against huge players like Google, Apple, Amazon, with a lot of political connections, and now - in a new political reality - somehow has to try to extricate itself with the minimum amount of damage." The CMA's delicate balancing act is made harder by U.S. President Donald Trump's muscular defence of U.S. business interests, and Scanlan said the regulator would want to see what would happen with Google there. TOUGHER PROPOSALS Some of the measures the CMA is proposing, such as choice screens for consumers to easily opt for alternative search engines, have been around for decades. Others, such as changing the ranking of results to limit Google favouring its own services, could have more impact if they are confirmed in the CMA's final decision in October. Tom Smith, a competition lawyer at Geradin Partners and a former CMA legal director, said there was a question mark over political support for some of the regulator's tougher proposals, but thought it was trying to stick to its guns. "Given the new context, it's still implementing the regime properly," he said, adding that the U.S. Department of Justice had proposed measures that could lead to a breakup of Google, particularly in its search and advertising businesses. "The idea that the CMA is going too far by putting in a choice screen, it's quite ludicrous." Despite that, Alphabet-owned Google warned it may not bring new features and services to Britain if the regulator goes ahead with the proposals, and said "proportionate, evidence-based regulation" was needed if Britain was to grow its economy. Google, which employs around 7,000 people in Britain, accounts for more than 90% of all general search queries in the country, with more than 200,000 businesses relying on its search advertising to reach their customers. But according to submissions to the CMA from the likes of flights and hotel website Skyscanner and the recommendation platform Checkatrade, that dominance may have enabled it to favour its own services over their offerings, and they want regulatory intervention. Silicon Valley has been wary of the CMA since 2023, when it blocked Microsoft's $69 billion acquisition of the "Call of Duty" maker Activision-Blizzard. Having sparked fury from the U.S. companies, it then tore up its own rule book to approve the case after Microsoft made some changes. Its second investigation under its new powers is examining mobile operating systems, targeting Google and Apple. Previous CMA investigations had pointed to Amazon as the subject of the third strategic market status investigation that was due to be announced this summer. On Tuesday, however, the CMA pushed the third case back to next year. (Writing by Paul Sandle. Additional reporting by Sarah Young. Editing by Kate Holton and Mark Potter) Sign in to access your portfolio
