Tech giants made to pay

JENNIFER DUDLEYNICHOLSON

“It’s about a fair go for Australian news media businesses, it’s about ensuring that we have increased competition, increased consumer protection, and a sustainable media landscape,” the Treasurer said.

“Nothing less than the future of the Australian media landscape is at stake with these changes.”

The draft code comes a year after the ACCC handed down the results of an inquiry that recommended tech giants share revenue acquired “directly or indirectly” from Australian news.

Under the new code, Google and Facebook must compensate commercial news businesses, like Nine Entertainment, Seven West media and News Corp, for their content, with negotiations over payment taking place over three months. If the companies cannot agree, they will have 45 days to submit a final offer, with the most appropriate chosen by an arbitrator.

Government-funded organisations ABC and SBS will benefit from other parts of the scheme, including more information changes.

News Corp’s submission to the inquiry, which is available publicly, lobbied for the ABC to be included as a beneficiary.

ACCC chairman Rod Sims, who has spearheaded the fight for a fairer system since 2017, said the code was designed to produce a quick outcome and fix “a fundamental bargaining power imbalance”.

Google Australia and New Zealand managing director Mel Silva slammed the code, saying it did not offer incentive for innovation, did not account for web traffic provided to news outlets, and put Google services in Australia at risk. Facebook did not comment.

The changes were welcomed by media businesses with News Corp Australia executive chairman Michael Miller calling it a “watershed moment to benefit all Australians” and one that could secure a future for local media. about algorithm