EU vote blocks copyright reform and saves tech giants from payouts

The European Parliament has rejected a proposed internet copyright law that would have forced tech giants such as Google, YouTube and Facebook to increase payouts over royalties.

A total of 318 lawmakers voted against the new law on Thursday, while 278 voted in favour and 31 abstained. After being debated for two years, the bill will now be sent back to Parliament for further discussion.

The EU vote would have forced tech companies to share more of their revenues by making billions in payouts to press publishers, record labels and artists. They would have also had to introduce monitoring systems to look for copyright infringements.

Musicians including Paul McCartney believe the regulation could right a wrong and make the digital giants pay a fairer amount for the use of intellectual property.

Companies such as YouTube which has 1.3bn users pays artists 67 cents per user annually in royalties.

The anti-copyright campaign argued that tougher enforcement of copyright rules would “kill” the internet as we know it and could be harmful for freedom of speech.