Meta, Google face media deals pressure as Labor accepts code review suggestions
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The news: Assistant Treasurer Stephen Jones has effectively fired the starting gun on renegotiations between news publishers and tech giants Google and Meta under the media bargaining code, warning the government is prepared to force them back to the table.
Jones issued the warning in a media statement late Sunday, announcing the government would adopt the recommendations of Treasury’s review of the News Media Bargaining Code, handed down December last year, in full.
The recommendations include giving the Australian Competition and Consumer Commission (ACCC) new information-gathering powers and would see it publish periodic reports on the platforms captured by the code.
The context: The code took effect in 2021 and resulted in lucrative deals between publishers and the tech giants for the use of news on their platforms, with a combined value of roughly $200 million, some of which are due to expire in 2024.
The earliest deals approaching expiry were struck with Meta, which has in recent years made a marked retreat from prioritising news on its platforms, which include Facebook, Instagram and, more recently, Threads.
Publishers as a result have ramped up lobbying efforts to encourage the federal government to exercise its powers under the code to force the platforms, and especially Meta, back to the negotiating table to renew their deals.
What they said: “The Review made sensible recommendations to strengthen the Code for the future, and we are glad to support them. But let us be very clear: we already have the power to designate digital platforms and we are prepared to use it. We want to see news outlets and digital platforms come together and negotiate in good faith,” Jones said.
The source: Government media release
