• Australian Parliament has passed the Morrison Government’s world-leading News Media and Digital Platforms Mandatory Bargaining Code that addresses the bargaining power imbalance between news media businesses and digital platforms.

    • The Code was developed after extensive analysis from the Australian Competition and Consumer Commission (ACCC), including almost three years of public consultation.

    • The Code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia.

    • The Code provides a framework for good faith negotiations between the parties and a fair and balanced arbitration process to resolve outstanding disputes.

    • Importantly, the code encourages parties to undertake commercial negotiations outside the Code and the Government is pleased to see progress by both Google and more recently Facebook in reaching commercial arrangements with Australian news media businesses.

    • The Code will be reviewed by Treasury within one year of its commencement to ensure it is delivering outcomes that are consistent with the Government’s policy intent.

    • Failure to enter such an agreement, either collectively or with individual publishers, within 3 months of the bill becoming law would lead to decide on compensation.

Background

    • News is a costly business which when shows up for free on Google, or is shared on Facebook, it drives up the traffic and ad revenue increases.

    • However, news organisations themselves get very marginal returns on their investment.

    • As per a report, the number of journalists in traditional print media businesses fell by 20% from 2014 to 2018.

    • Also between 2008 to 2018, 106 local and regional newspaper titles closed across Australia, leaving 21 local government areas without a single local newspaper in either print or online format.

    • Australia’s new law could set a precedent for how other countries regulate Big Tech. Countries like France have undertaken some measures to make the tech firms pay for news, while others like Canada and the U.K. are considering their next steps.

(The author is a trainer for Civil Services aspirants. The views expressed here are personal.)