Australia's News Media and Digital Platforms Mandatory Bargaining Code - a world-first initiative and a bonanza for big media players but a disappointment to some smaller players who don’t have the same clout -- is coming up for one year old.
The code, forcing Meta and Google to the negotiating table to pay for the premium news these platforms use, has been a source of fresh revenue, meaning more resources to apply to Australian journalism.
We don’t know how much, because these numbers are government by commercial confidentiality, but we do know that News Corp and Nine Entertainment have done very well, adding millions to digital revenue.
Not all Australian publishers are happy but many have benefitted. Google gets praise but Meta, Facebook's parent, faces criticism for stonewalling publishers seeking compensation.
A review of the code by the federal Treasury department found that more than 30 commercial agreements between digital platforms (Google and Meta) and a cross section of Australian news businesses have been struck.
These, Treasury says, were highly unlikely to have been made without the code.
Treasury: “On the evidence available to the review, at least some of these agreements have enabled news businesses to, in particular, employ additional journalists and make other valuable investments to assist their operations.
“While views on the success or otherwise of the code will invariably differ, we consider it is reasonable to conclude that the code has been a success to date.”
And this has meant more resources applied to journalism. The ABC had appointed 57 regional positions, including reporters in 19 locations, 10 of which did not previously have them.
The review finds that the code lacks a formal mechanism to extend to other platforms. The review didn’t mention them by name but could include Twitter and TikTok.
Treasury: “To address this, the review suggests the government consider directing the (competition watchdog) ACCC to prepare reports on this question.”
Nine Entertainment, in its submission to the code, pushed for TikTok and Youtube to be designated in the code.
The media group: “Whilst Nine was able to negotiate deals with both Google and Facebook, there is little to no incentive for social media platforms (such as TikTok) to enter into commercial negotiations for fair remuneration of news content as they have not been designated and have not been named as liable to designation.
“TikTok has so far refused to engage in any commercial conversations with Nine about the fair remuneration for Nine news content appearing on its social media platform.”
The review noted most, if not all, commercial agreements will expire over the next two to three years.
Treasury: “Arguably, a critical test of the code’s effectiveness will be the extent to which a new round of agreements is made.”
Under the current code, many smaller publishers complain they have not seen a benefit.
According to the review, Meta and Google suggested that some news businesses have unrealistic expectations about receiving remuneration.
Google told Treasury it had been approached by a number of smaller and independent publishers of niche lifestyle publications and city guides, seeking commercial deals.
However, Google says the publishers had “commercially unreasonable expectations”.
Some did well, including the Conversation which told Treasury: “Google engaged in bargaining with The Conversation in good faith and agreed to fund The Conversation under the code.”
Meta, however, didn’t play. The Conversation: “Without providing a reason, Facebook declined to negotiate with The Conversation and SBS, as well as many other quality media companies otherwise eligible.”
SBS: “Whilst the code has operated to effectively incentivise Google to negotiate and complete a deal with SBS, it has not provided sufficient incentive to Meta to engage constructively with us.”
Commercial radio is concerned that the majority of commercial radio stations have not been able to benefit from the code.
Commercial Radio & Audio (CRA) CEO Ford Ennals: “Radio plays a critical role in live and local Australian news reporting.
“We will continue to engage with government and the ACMA ( Australian Communications and Media Authority) on this issue as we believe further action is required to designate digital platforms under the code.”
Free TV Australia chief executive Bridget Fair said: “Since the Code’s inception, we have been pleased to see commercial broadcasters entering into agreements with Google and Meta, confirming the value of trusted Australian news to both the platforms and our audiences.
“Without the News Media Bargaining Code, these agreements and the payment for our valuable news content would not have been possible,” Fair said.
Free TV notes Treasury’s recommendation that the government should direct the ACCC to report on the bargaining power imbalance between news media businesses and digital platforms that use news content, as well as ongoing regular reviews of the code.
In responding to this recommendation, the government should also issue a statement that clearly sets out its expectations that digital platforms continue to enter and maintain agreements with all relevant news media companies.
If these agreements are not reached, the Government should exercise its power to designate digital platforms under the Code. This should include services operated by Google and Meta such as Google Search, Facebook Feed and Instagram and social video platforms, YouTube and Facebook Watch, that are a critical path to market for television news services.
“While the code has so far been successful in incentivising platforms to enter into commercial agreements with news media organisations, this incentive must be maintained. We look forward to engaging with the government as it develops its response to this review,” Fair said.
Google's Lucinda Longcroft, director, government affairs & public policy: “We’ve been partnering with Australian news companies to strengthen quality journalism for two decades. Over the last two years, we’ve furthered our significant contribution to the Australian news industry by launching News Showcase and signing agreements with more than 70 Australian news businesses, representing 200 mastheads across the country. The majority of these outlets are regional or local.”
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