The government will make changes to the news media bargaining code before it heads to parliament, including an amendment that clarifies Facebook and Google would make lump sum payments under the code rather than pay for links.
Josh Frydenberg and communications minister Paul Fletcher released a joint statement saying that they would introduce “clarifications and technical amendments” this week to the code to “enhance” the way it works.
One of the changes includes "removing any doubt" that arbitrated remuneration will be in the form of lump sum payments - rather than payment for links. Google in particular has lobbied heavily against payment for links in Search, arguing it would “break” the internet and force it to withdraw Google Search from Australia.
The code will also be changed to clarify the arbitration criteria so that it considers the “reasonable costs” of both the digital platform and news media business and streamline the requirements for digital platforms to give advanced notice of algorithm changes to make them more workable.
Facebook had highlighted the arbitration criteria and algorithm notice requirements as components that make the code “unworkable”.
The government will also update the bill to clarify the role of the ACCC to ensure its focus is on providing factual information to assist the arbitrator and adjust the effect of anti-avoidance provisions so that they take effect from the commencement of the code and ensuring the government’s policy intent of not interfering with existing contractual rights under the code is achieved.
The government is encouraging tech giants and publishers to reach agreements outside of the code, which is expected to head to parliament for a vote in the next fortnight.
“A central feature of the Code is that it encourages parties to undertake commercial negotiations outside the Code,” the statement from Frydenberg and Fletcher reads.
“It is encouraging to see recent reports that news media businesses and digital platforms are now reaching commercial agreements, against the backdrop of the Code being introduced into Parliament on 9 December 2020 and receiving the backing of the Senate Economics Legislation Committee.”
The updates come after Seven West Media revealed it had signed a multimillion dollar deal with Google for its News Showcase. The Sydney Morning Herald is reporting today that its owner Nine has also reached a deal with Google, however Nine hasn’t confirmed the reports.
“We continue to have constructive discussions with the digital platforms and when we have anything to announce we will do so to the ASX as is appropriate,” a Nine spokesperson says.
Junkee Media has also announced today that it has signed a letter of intent to curate news content for Google's News Showcase.
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