KT Opinion: Can Europe save its local news media?

Though some wonder if it is too little too late, the European Commission has announced it will introduce the European Media Freedom Act next year intended to help preserve pluralism in the local press as traditional media continue to struggle with online competition, often from dominant tech giants.

Long considered fundamental to Europe’s democracies, local newspapers continue to suffer from declining revenues, while many that have managed to survive this far are no longer able to fully fulfil their function of providing well-vetted stories for an informed population. The result is a polity left with possible fake online news or information lacking the depth needed in a complex world.

Thierry Breton is the EU commissioner whose portfolio tasks him with protecting the bloc’s small and medium-sized businesses, and that includes local media companies. He told the European News Media Forum held at the end of last month that the goal of the Media Freedom Act would be to ensure the integrity and independence of EU media and realistic access to the revenues needed to survive.

“We want to boost media pluralism and improve the resilience of the sector as a whole,” he said. “We want to act against all types of unjustified interferences in the activities of our media companies.”

A veteran opponent of Big Tech media dominance, Breton has been aggressive enough in his mission that Google once laid plans to discredit him, leading to an apology from the chief executive of Google’s parent company Alphabet last year.

After an internal memo was made public, CEO Sundar Pichai apologised and promised that such tactics are “not the way we operate”. He said he was never shown the plan and had not sanctioned it.

Today Breton is continuing his mission, saying the proposed new law “is a matter of European sovereignty – as you may have heard me say on multiple occasions, everything is geopolitical. Information, far from being an exception, is a textbook case”.

But with online giants taking up to 80 per cent of ad revenue in some markets, what can the EU do to help save its indigenous media?

The legislation intended to thwart political interference and prevent takeovers by a few large media groups is broadly welcomed by politicians, news outlets and NGOs but some wonder why it is taking so long and worry about implementation.

The challenge is not only competition in the market, or lack of it, but also how readership is changing. In Germany, just 37 per cent of people consulted printed news once a week in 2018. That number has now dropped to 26 per cent. More than half (54 per cent) of Europeans now get news from their smartphones.

As traditional readership declines, media are forced online and scramble to find a viable revenue stream. With enormous numbers of clicks needed to generate even modest income, many outlets can’t find a business model that works. The desperate bid to garner clicks can also lead to sensationalized “click bait” stories that might be spreading fake news.

And that could have even deadly consequences. As the need and appetite for reliable information became crucial during the Covid-19 pandemic, it was clear that well-resourced and funded media professionals were an absolute necessity. This is not the time for home remedies or sharing fear-driven exaggerations.

With questionable information sometimes shared online, it became clear Europeans place greater trust in traditional media, said Breton. In leading the recent forum on the issue, he said the EU has “to respond and ensure that citizens can access reliable, quality and independent information, including online”.

He announced that with financial backing from the EU, 16 national press agencies from across Europe would join under one roof to create the so-called European Newsroom.

Jon Van Housen and Mariella Radaelli 
are veteran international journalists 
based in Milan