By Anna Mazgal
February 8, 2017
Article from COMMUNIA
Evidence shows link tax could cost Spanish news aggregator 20 times its turnover
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.
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