Australian media watches on as Canada and Meta clash over news code

Australian publishers are watching closely as Facebook’s parent company, Meta, clashes with the Canadian government over its new Online News Act, a copycat policy of Australia’s world-first news media bargaining code, ahead of renegotiations in the coming year.

The Canadian government announced last week it would stop purchasing advertisements across Facebook and Instagram in response to Meta’s plan to end news availability on its platforms in the country. The move mirrors Facebook’s move in Australia two years ago to ban publishers and users from sharing or viewing news articles on its platform in response to the then-Morrison government’s proposed media bargaining laws.

Meta and the Canadian government have clashed over new legislation.Credit: Bloomberg

Canada passed the Online News Act last month requiring Meta and Alphabet (owner of Google) to negotiate deals with the nation’s publishers over displaying news content, similar to the requirements in the news media bargaining code, which passed into law domestically in 2021.

Both companies subsequently signalled their intent to block all news on their key platforms in Canada by the time the law comes into effect this year, according to Bloomberg.

Meta signed agreements with many of Australia’s top publishers two years ago in three-year deals, meaning renegotiations could begin towards the end of 2023. However, many industry onlookers have suggested Meta’s history of behaviour in Australia and hardline approach in Canada indicates the next round of negotiations with Australia’s publishers are unlikely to yield the same result.

Australia’s two largest media companies, News Corp and Nine (the owner of this masthead) say they are uncertain of Meta’s intentions.

“We are only 18 months or so into our current deals and we have not commenced any discussions,” says News Corp Australasia executive chair Michael Miller on the next round of talks with Meta.

“We have frequent and productive partnership conversations and a strong working relationship with the Meta team.”

However, Miller says he and his team are keeping a close eye on Canada, which will likely inform how Australian publishers approach the digital giant in the coming year.

“We will continue to observe Canada. However, we see the market dynamics and approach of the Canadian government differing to what happened in Australia.”

Nine declined to comment. However, company sources believe its approach mirrors that of News Corp.

News Corp Australia boss Michael Miller will be keeping a close eye on Canada.Credit: Alex Ellinghausen

Australia’s news media bargaining code was introduced in an effort to force Google and Facebook to pay eligible news publishers to display articles in the search engine and “newsfeed”.

Meta declined to comment.

Since 2021, Meta has continued to cast doubt on any future deals, saying in a May 2022 submission to a government review that the laws had distorted its approach to investment in news media and failed to fix the challenges facing the sector.

“Since its passage, the law has been globally touted by publishers as a successful model to support public interest journalism,” Meta said in the submission.

‘We see the market dynamics and approach of the Canadian government differing to what happened in Australia.’

News Corp Australasia executive chair Michael Miller

“It is better described as an untidy and short-term compromise that we have nonetheless tried to work with in good faith.

“While we were already planning to invest in Australian news prior to the legislation passing, the law distorted our approach to investment.

“As long as the law stands and any digital platform can face designation, it will deter platforms from making news available on their services or attempting to work with publishers to solve their business model challenges.”

Renegotiations with Alphabet are not as pressing, with most agreements set to longer terms. Nine’s agreement with Google, signed in February 2021, was worth more than $30 million in cash annually for five years, in figures shared by industry sources familiar with the talks who spoke anonymously because of non-disclosure agreements.

Professor of media and communications at Swinburne University Diana Bossio says Google and Meta are going to try hard to avoid setting any international precedent for compliance with this type of legislation, as indicated by the recent events in Canada.

“Frankly, I would be surprised if Meta even deigned to come to the negotiating table,” Bossio says.

Bossio says conditions have changed significantly since the first round of negotiations were completed, making it hard to assess what approach Australian publishers will take, though she believes other, more pressing items on the government’s agenda could potentially let Meta off the hook.

“Meta has faced financial difficulties, and shown a willingness to just pull news altogether. The Australian government has changed, and I do wonder if, given the national concern around cost of living, whether this is going to be top of their list of initiatives to support.”

Meta, which has deals with 13 media organisations in Australia, launched its new social media platform, Threads, last week, garnering five million users in its first few hours. The new platform is likely to add further complications to negotiations, according to Bossio.

Threads launched during the week and could add further complications to negotiations.Credit: Bloomberg

Google has made deals with 23 publishers.

Treasury was asked if it was considering whether to reinforce the laws or change them in the coming years.

A government spokesperson said: “The Government received the News Media Bargaining Code Review in December and is considering its response. We continue to monitor developments overseas and will consider potential impacts for Australia.”

Bossio says the news media bargaining code has been a “game changer” in terms of how governments globally think about media regulation, traditionally focussed on a copyright law framework.

“Governments in South Africa, Brazil, Indonesia and the UK are watching carefully – and learning from events happening in Canada right now, given that the Canadian government were confident that they had ‘fixed’ some of the issues that the Australian legislation had”.

Similar laws have been proposed in the United States through the Journalism Competition and Preservation Act and similarly in New Zealand, modelled on existing Australian and Canadian acts.

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