Google, Facebook and other digital platforms could be forced to pay hundreds of millions of dollars in fines if they fail to comply with a news media bargaining code released by Australia’s competition regulator on Friday.
The Australian Competition and Consumer Commission was asked to develop the mandatory code in April by the treasurer, Josh Frydenberg, after negotiations between the digital platforms, the ACCC and media companies stalled, and media companies experienced a sharp fall in ad revenue due to Covid-19.
Dozens of newspapers have shut since the pandemic began, and hundreds of journalists have been furloughed or made redundant in what has been an acceleration of the crisis facing the news industry.
Frydenberg said on Friday it became apparent to the government that progress wasn’t being made in negotiations between the parties on payment for content.
He said the code wasn’t about protecting news media from competition or disruption, but creating a level playing field and ensuring a fair go.
“We want Google and Facebook to continue to provide these services to the Australia community … but we want it to be on our terms. We want it to be in accordance with our law and we want it to be fair.”
The treasurer will decide which companies will be required to comply with the code, but it will start with Google and Facebook. The Australian Communications and Media Authority (Acma) will determine the eligibility of media companies.
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