The federal government it is again taking aim at digital platforms, to ensure they pay publishers for news, with the release of its long awaited News Bargaining Incentive consultation paper.
The paper’s aim is to ensure digital platforms, benefiting from advertising in Australia of at least $250 million, contribute to the sustainability of news and journalism in Australia.
It reinforces the News Media and Digital Platforms Mandatory Bargaining Code introduced in 2021.
“Treasury is mindful that digital markets are fast-moving and the interaction of news media with platforms will change over time as markets change,” the paper says.
“The incentive will seek to balance flexibility in its scope and operation, while providing a level of certainty to platforms and news businesses.”
Assistant treasurer Daniel Mulino said the incentive is designed to encourage commercial arrangements between the platforms and news publishers by providing a generous deduction for eligible deals.
The incentive will apply to all large digital platforms operating significant social media or search services in Australia.
“The mechanism cannot be circumvented by digital platforms withdrawing news content,” he said.
This is a tilt at Meta which insists it doesn’t want news and that news isn’t why people use its apps, including Facebook.
And the current code, which initially delivered about $250 million to Australian publishers, allows a platform to block news and therefore avoid liability.
“While it has been successful in creating deals between digital platforms and news businesses, the code can only apply to digital platforms that carry news on their services,” the discussion paper says.
“In practice this means that, without further incentive, a platform withdrawing news entirely from its service would render designation under the code ineffective (as there would be nothing to negotiate or arbitrate over).
“A withdrawal of news from any large platform would affect all news publishers in Australia, regardless of whether they have commercial deals, notably including a significant number of small publishers that are heavily reliant on digital platforms to distribute their content.
“If the code is circumvented by one platform, it would leave a multimillion-dollar funding gap for news businesses and may leave only one platform under the code.
“Ultimately, this outcome would have flow-on adverse impacts for readers and other beneficiaries of public interest journalism in Australia.”
Under the new proposal, platforms refusing to link content deals will have to pay a percentage of local revenue.
Consultation closes December 19.
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