Government to scrutinise media laws as NZ forces Google, Meta to bargain

An SBS spokesperson said the code’s review did not adequately address the problems that have emerged since it was created. SBS was able to sign an agreement with Google but was shut down by Meta last year.

“There remains little transparency over the amounts of money being negotiated, let alone how it is spent and there are clear opportunities to tackle issues such as the ‘poison pill’ provisions, which are believed to have emerged in some deals,” an SBS spokesperson said.

“It is disappointing that the review condones an outcome where large commercial organisations and their shareholders see the benefits, but a public media service such as SBS does not.”

“If the Code cannot be improved to create a more level playing field, then SBS believes the Government should consider designating Meta to ensure SBS, The Conversation and other smaller publishers can make use of the negotiation and arbitration provisions in the Code.”

In its submission to the government, SBS called for Meta to be legally forced into negotiations. The submission, released publicly over the weekend, recommended “urgent amendments” to the code to avoid deals with other providers imploding if Meta were to be designated.

“Also of concern is the possibility that the voluntary commercial deals completed across the media sector contain provisions which would mean the deals are invalidated if a platform is designated under the Code,” it said. “To address concerns arising from the possibility that existing deals may be voided if a platform is designated, it may be appropriate to empower the Treasurer to designate platforms in relation to a specific subset of news media businesses.”

“It is disappointing that the review condones an outcome where large commercial organisations and their shareholders see the benefits, but a public media service such as SBS does not.”

SBS’s submission on the code

Minderoo Foundation’s Emma McDonald, who was a media advisor to former communications minister Paul Fletcher during the code’s creation and helped small news outlets strike deals, urged the federal government to act swiftly.

“Outlets such as Apple News, Instagram, YouTube and others need to be put under the microscope to determine their coverage of content of Australian news businesses and whether there is a bargaining power imbalance,” McDonald said. “The Government must not lose sight of the fact that although Google showed good faith in its negotiations with large and small publishers, Meta did not meaningfully engage with smaller independent publishers, or SBS and The Conversation.”

Australia’s legislative efforts have received international recognition and have prompted similar regulation in markets such as Canada and New Zealand.

New Zealand’s minister of broadcasting Willie Jackson said on Sunday his government would introduce laws similar to Australia and Canada to force tech giants into “high quality” voluntary deals with local news outlets. “It’s not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it’s only fair they pay,” Jackson said.

“The legislation will be designed as a backstop to encourage companies to reach high quality voluntary agreements in the first instance.”

Meta’s regional head of policy Mia Garlick slammed the plans, claiming the proposal misunderstood the relationship between Facebook and news publishers and its current commercial deals in New Zealand. “It also fails to recognise…. Government’s own independent advice that news legislation won’t solve the longstanding digital transformation challenges facing the news industry,” Garlick said.

“We are concerned about the unintended impacts future legislation will have on innovation in both the media and broader tech sector, in particular for smaller entrepreneurial publishers including Māori, regional, digital first and diverse media.” Meta claims it has supported 16 news outlets in the country over the past 12 months through commercial deals and grants and training programs. Google was approached for comment.