Katie Allen (Higgins, Liberal Party) Share this | Hansard source

An informed public is a public that can participate meaningfully in democracy. Over recent years we have seen digital platforms such as Google and Facebook make a killing from advertising and news content. They have provided, however, a fantastic service to the public. At the same time, new media providers are struggling to find a workable business model for public interest journalism. We've seen many smaller, though equally important, media providers sadly leave the market. Something doesn't stack up. As a consequence, democracy is suffering.

It was no surprise when the ACCC released its finding that there is a significant imbalance of bargaining power between digital platforms and news media providers. Essentially, this means that news media providers are not being fairly remunerated for their content. The Morrison government, having worked closely with the ACCC and other stakeholders, is introducing this bill to establish a mandatory code of conduct to address this problem in a fair, flexible way. Make no mistake, this bill is being widely watched around the world.

In summary, this important bill will establish a mandatory code of conduct to ensure major digital platforms pay Australian media companies for use of news content. This is achieved through six principal elements which underpin the code. The first element is bargaining. Digital platforms and news media providers are bound to bargain in good faith.

The second element is compulsory arbitration. When parties cannot come to agreement about remuneration after three months of negotiations, the code sets up a mechanism for the dispute to be referred to an arbitration panel. They will consider the facts at hand and select between the two final offers made by the bargaining parties. In so doing, they must consider the reasonable costs of both the news media business and the digital platform. This reflects Google's request, following the ACCC draft version of the code, that it needed to take account of the value that both sides bring to the table—a necessary adjustment and amendment. Further, the code also clarifies that payments must be made in lump sum rather than digital platforms having to pay per click. This was an important feature of the code for digital platforms in this review process.

The third element is notice of algorithm changes. Digital platforms must notify news businesses of algorithm changes with respect to listing items on a search. However, as per Google and Facebook's request, there are important digital-platform-friendly limits on this requirement which ensure this requirement is streamlined and workable.

The fourth is nondifferentiation. This mandates that digital platforms must not differentiate between news media providers participating in the code and those that are not. This is an important protection for news media providers which safeguards their commercial autonomy.

The fifth element is contracting out. The bill allows digital platforms to reach a commercial bargain with news media providers outside the code about remuneration and other matters. In fact, it openly encourages parties to undertake commercial negotiations outside the code. In this way, the code does not represent a regulatory behemoth, as some may have argued, but merely a minimum standard which protects parties in instances where there is a substantial bargaining imbalance.

The sixth element is standard offers. In the interest of commerciality, digital platform corporations may make standard offers to news businesses to reduce the time and cost associated with negotiations. If parties agree to a standard offer and notify the ACCC, they do not need to comply with bargaining and compulsory arbitration as per the code. This may prove particularly beneficial for digital platforms when dealing with smaller news businesses.

As a further protection for digital platforms, the code clarifies that they will not have to share data with news media providers. After the ACCC released its initial draft version, Google expressed concerns that they would have to give data to news media providers about how customers use Google services. The government took these concerns on board, and this bill clarifies that digital platforms will not have to share actual data on news interactions.

The purpose of this bill is really quite simple. It's to address the power imbalances between digital platforms and news media providers and to support the sustainability of the Australian news media sector. The bill comes off the back of the ACCC Digital Platforms Inquiry's final report, which found that digital platforms possess substantial bargaining power over news providers. With consumers—including everyone in this place, I'm sure—increasingly obtaining their news online, news media providers have struggled to develop viable alternative business models. At the same time, digital platforms have made billions through advertising and piggybacking off the hardworking news media providers seeking to deliver public interest journalism. What's more, according to Professor Tama Leaver of Curtin University, digital platforms such as Google and Facebook do not just link news content; they reframe it. They find, sort, create and present news content in a way that adds value for their users. What is at stake, if this unbridled trend continues, is democracy. A free and independent media is crucial to the functioning of a strong democracy. This should always be remembered and prioritised, just as this bill seeks to do.

We are already witnessing the pre-eminence of this bill in action before it is even passed. Google and Seven struck a deal on Monday, while Google and Nine signed a letter of intent today. Today, the chief executive of youth publisher Junkee Media, Neil Ackland, announced that they have signed a deal with Google, noting that his team are extremely pleased with the outcome. There are also media reports that the ABC and The Guardian Australia could finalise deals with Google sometime in the near future, although nothing is yet concrete.

If this mandatory code is adopted, Australia has the chance to be a world leader in addressing the bargaining power imbalances between digital platforms and news media providers. In so doing, we will become a beacon for democracies elsewhere who truly value a free and independent media. Despite the suggestions from digital platforms to the contrary, this code addresses this serious problem in a fair, flexible and commercially minded way. At its core, it is simply asking digital platforms to pay news media providers for using their content. That hardly seems controversial. I commend this bill to the House.

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