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It’s not ‘fair’ and it won’t work: An argument against the ACCC’s news media bargaining code

What's New in Publishing 03 Sep 2020 07:00

Google and Facebook have threatened to limit or remove news services for Australian users, in response to the Australian Competition and Consumer Commission’s draft news media bargaining code.

This week, Facebook announced should the code become law, the company would stop letting publishers and users share local and international news on its Australian Facebook and Instagram sites.

Google has also made implicit threats to limit its Australian news services – potentially by removing Google News in Australia, as it did in Spain in 2014.

Arguments in favour of the code centre on two points. First, that Australian media outlets are in critical danger of going bust because of Google and Facebook’s dominance of the digital advertising market.

Second, that Google and Facebook are Godzilla-like entities dominating the market and resisting any regulation attempt – especially one that could set an international precedent.

It’s true regulation has a role in addressing the anti-competitive aspects of the digital advertising industry, but I have doubts about the ACCC’s code. It would allow commercial news businesses to bargain with Google and Facebook, in order to be paid for Australian news content included on their platforms.

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There is another way

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