Seven West Media has welcomed the government’s final news media bargaining code, saying the concessions made to the tech giants mean there’s no reason the two parties can’t reach commercial deals.
The final code, which is expected to become law next year, uses final-offer arbitration as a last resort if the tech giants and news publishers fail to reach a deal.
However, in a win for Facebook and Google, the arbiters will have to consider the value in traffic provided to publishers by the platforms.
The final code also reduces the period of notice Facebook and Google are required to give to publishers about algorithm changes from 28 to 14 days. It has also been restricted to “conscience” algorithm changes that will have significant impact on ranking, rather than the “machine-learning progress” of algorithm changes that happens continuously.
Seven CEO James Warburton says the updated code means the two parties should be able to reach “fair” agreements.
“The Morrison Government should be congratulated for its pioneering and innovative News Media Bargaining Code,” Warburton says.
“It’s a sensible and fair proposal, as it should be.
“The revised Code provides the concessions to the digital platforms that they have been asking for. There’s now no reason for Facebook or Google to be unwilling to negotiate fair agreements. Australians will be the winners under the Code, with local media businesses that produce local news and content and support local jobs now provided with a pathway to a sustainable future.”
News Corp Australia boss Michael Miller also backed the code, saying that the concessions mean there “should be nothing stopping them [Facebook and Google] now from reaching fair commercial agreements".
However, Nine has publically taken issue with the concessions saying in a statement that it further entrench the platforms’ monopoly power.
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