Rod Sims, a former chair of competition watchdog ACCC and one of the chief architects of Australia's News Media Bargaining Code, has released a report reviewing the code after its first year in force.
He recommends that Facebook (Meta) be officially "designated" under the code, which would force the social media platform into binding arbitration with media companies.
Sims said that while Google is still talking to news businesses and more deals may be announced soon, Meta has done the opposite.
‘Inexplicably Facebook, now Meta, let it be known that they have now stopped doing more commercial deals with news businesses of the type envisaged by the NMBC.
‘Facebook, now Meta, did deals with many media companies involving large sums of money. Having outlaid this it is puzzling that they stopped negotiating without completing deals with, for example, SBS and The Conversation, who clearly produce significant “core” news.’
In the treasurer's statement announcing the review of the NMBC in February, the objective of the Code was made explicit, with reference to digital platforms compensating news companies.
“The Code aims to address bargaining power imbalances to ensure that digital platforms fairly remunerate news businesses for the content they generate, thereby helping to sustain public interest journalism in Australia.
“The Code provides incentives for digital platforms and news businesses to reach commercial deals outside of the Code.
Sims went on to say: ‘Most of the news media... were all largely satisfied with the deals reached. This is in stark contrast to their inability to negotiate with Google and Facebook prior to the NMBC legislation.’
‘While I do not know the precise amount it is clear that the annual payments are well over A$200m. Based on approximate calculations, A$200m is likely more than 20 per cent of the news media businesses combined EBITDA, so the amount is significant.’
The report was written for the Judith Neilson Institute for Journalism and Ideas, which also published Columbia University Professor Bill Grueskin's critique of the code for international audiences.
Sims is currently a professor at the Crawford School of Public Policy at the Australian National University.
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