What's next? What does the final News Media Bargaining Code contain? We want to address some key questions to help clarify our position. Google had previously threatened to withdraw all services from Australia in a stunning senate inquiry at the end of January, but they have since backflipped and sought more welcome remedies in the last couple of weeks. Advertisement. Australia’s new media bargaining code: What’s really up down under. The code was converted to a bill and sent to Parliament in December 2020. Your email address will not be published. For those focused on where the future of the internet media economy is headed, all eyes turned to Australia in recent weeks. ", This page was last edited on 21 May 2021, at 17:46. Google argues that it would fundamentally break how search engines work and that the code’s one-sided model only considers news publisher’s’ costs whilst attempting to discount the benefits news publishers receive from Google. The draft News Media Bargaining Code which was released on 31st July 2020 is essentially the first step when it comes to taking legislation changes to parliament before being passed into Australian law. "[9] Nine Network estimated this amount to be $432 million. The ACCC initially recommended that a voluntary code between the tech giants and local media companies be reached through independent negotiations. To solve that problem, the Media Bargaining Code creates a mandatory negotiation process for Big Tech and the media. Proponents of the law argue that the profitability of social media companies is partly attributable to the fact that users can receive news updates even when they do not view the ads on the page of the original publisher. The Bill lays out what the negotiation process should look like, and what happens if an agreement cannot be reached. The ACCC released a draft code for public consultation on 31 July 2020. The most important thing to note is that Google, YouTube’s parent company, has been advocating for policies and laws that keep creators’ best interests in mind. The draft News Media Bargaining Code was published by the ACCC in July 2020, and interested parties were invited to make submissions regarding the proposed code. [4] Other notable technologists including World Wide Web inventor Tim Berners-Lee,[18] journalism professor Jeff Jarvis,[19] New York Times technology journalist Kara Swisher[20] and Stratechery writer Ben Thompson[21] have criticized the code for being technically unworkable. And Facebook and Google are fighting back. [32][33][34][35] Facebook also blocked pages of some government, community, union, charity, political, and emergency services, which were later reinstated. [7] The federal government announced it is stopping all its advertising campaigns on Facebook, worth millions of dollars. In April 2020, the Morrison Government directed the ACCC to develop a mandatory code “to address bargaining power imbalances between digital platforms and media companies”. If it gets passed then the social media giants such as Google and Facebook have to negotiate or bargain with the news organization to get there content and have to pay them for it. Safeguarding journalism here refers to the expected gains from the code, which is the slated reform to traditional media business models that would see them regain a sustainable source of revenue that has been lost in the digital age. The Australian government hopes it "will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia". [9] The code was supported by media companies based outside Australia The Guardian, the Daily Mail,[13] and News Corp. The News Media Bargaining Code (or News Media and Digital Platforms Mandatory Bargaining Code) is a law designed to have large technology platforms that operate in Australia pay local news publishers for the news content made available or linkedon their platforms. Google occupying $53, and Facebook $28 for every $100 spent on digital advertising in Australia. [7] A few days later, after the Australian government "introduced last-minute changes to the" bill, Facebook reached "an agreement with the Australian government" and said it would restore news to Australian users in the coming days. The highly contentious media bargaining bill, formally titled Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Bill 2021, passed both houses of Parliament. That means a radical piece of media reform — the bargaining code — will come into effect. [46] In late February, technology companies including Facebook and Google released the final version of an industry code to address the spread of misinformation on their services in Australia. The Media Bargaining Code introduces mandatory agreements between digital platform corporations (Digital Platforms) and News Companies registered with the Australian Communications and Media Authority (ACMA). Upon being … It was negotiated for three years before it was passed, and discussions between the Australian government and these platforms were tense, with Facebook Founder and CEO Mark Zuckerberg taking on the discussions himself. The draft legislation, titled “Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Bill 2020,” and dubbed the ‘News and Media Bargaining Code,’ attempts to moderate the relationships between companies like Google and Facebook and the Australian news media. The News Media Bargaining Code Explained. [4][5] In response, on 18 February 2021, Facebook blocked Australian users from sharing or viewing news content on its platform. Google and Facebook: the landmark Australian law that will make them pay for ne In turn, this could mean the news you see is not what is more relevant, but who was willing to pay the most. [9] The bill defined making "content available" by "if the content is reproduced on the service, or is otherwise placed on the service, or if a link to the content or an extract of the content is provided on the service. news headlines, snippets and images pulled into platforms like Facebook, or Google’s search results are not currently covered by copyright – enabling both tech companies to use this content without payment, and generate income surrounding the content via display or search advertising. The news media bargaining code is new legislation passed in December 2020. Google searches are inevitably interconnected with news by acting as a link between consumers and news publishers’ websites. In a Facebook post, Australian Prime Minister Scott Morrison said that "Facebook's actions to unfriend Australia, cutting off essential information services on health and emergency services, were as arrogant as they were disappointing. This power can be demonstrated by Google occupying $53, and Facebook $28 for every $100 spent on digital advertising in Australia. Former Australian Prime Minister Kevin Rudd, who is a prominent activist against News Corp,[22] has argued that the code has been designed to favour the company's properties. Essentially, the federal government is seeking to develop legislation that would force Google and Facebook into mandatory arbitration with news publishers for payment for value they obtain from having news content in news feeds and search results. Suffice to say, Google and Facebook are concerned with the workability of the code. [24], In December 2017, the Turnbull Government directed the ACCC to conduct an inquiry into "competition in media and advertising services markets", focusing in large part on Google and Facebook. They are also set to fund smaller publishers such as: Crikey, The Conversation, The New Daily, and The Canberra Times. [9], Google criticized the idea as unfeasible, especially the restrictions on when they can change the algorithms for how various sources are ranked. "[3]:3 Originating in April 2020, when the Australian Government asked the Australian Competition & Consumer Commission (ACCC) to begin drafting it, it achieved broad support in the Australian Parliament but staunch opposition from Facebook and Google.
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