EC proposing new content levy for sites using stories from providers such as newspapers

Google and Facebook will have to pay news publishers for the chunks of their stories online, that they used.

The internet giants would need to enter into deals with content providers, such as newspapers, before they could use excerpts of articles on their sites.

According to officials at the EC, in Brussels, the plans which would be made public in September, were being set up to weaken the clout of big online operators whose market offered them an advantage in commercial negotiations.

The move is being seen as the EU's initiative to push the case of rattled publishers against  powerful online players like Google.

EU officials were seeking 'media pluralism' with copyright reforms because publishers were seeing shrinking revenues, even though their online audiences were growing.

However, according to commentators, the proposals would lead to a new fight between the EU and Google, who are already locked in bitter talks over claims the search engine and mobile phone software provider was exploiting its dominant market position.

The new plans would see news publishers get exclusive rights to make their content available online to the public.

If other internet sites wanted to use extract, they would need to agree terms with the content providers before doing so.

The report comes after the US attacked moves by the EC to levy billions of euros from Apple for alleged underpayment of taxes in Europe, only days ago. (See: US Treasury steps in for Apple, others in Europe's tax bid).

According to FT.com, the reforms proposal would added to the already strained relationship between Silicon Valley and Brussels, which were locked in disputes over issues covering competition, tax and privacy.

The proposals plan to give news publishers "exclusive rights" to make their content available online to the public, which would force services such as Google News to agree to terms with news organisations for showing extracts of articles.

"Granting such rights to news publishers would not affect the way users share hyperlinks on the internet," said Christian Wigand, a spokesman for the EC,straitstimes.com reported. "It would recognise their role as investors in content."