‘The big tech companies are hard to deal with’: Senator Bragg

Liberal senator Andrew Bragg is urging Google and Facebook to swiftly strike deals with smaller news outlets after signing three key agreements with large media companies in the past month.

A long-term commercial deal between Facebook and Google and Guardian Australia is expected to be completed in a matter of days, adding to a raft of agreements struck between large tech companies and major media outlets since February. While companies like Nine Entertainment Co, News Corp Australia and Seven West Media are already implementing plans off the back of the deals, there is increasing concern among smaller companies that they still have not been remunerated fairly.

Senator Andrew Bragg is representing the interests of small outlets in negotiations with Google and Facebook. These outlets include Junkee Media and the Northern Beaches Advocate.Credit: James Brickwood

“The big tech companies have made strong public statements on supporting small, diverse publishers,” Mr Bragg said. “I am determined to see the commitments fulfilled.”

Mr Bragg wrote to Facebook Australia managing director Will Easton and Google Australia managing director Melanie Silva two months ago demanding clarity on how the tech giants were ensuring they were looking after small outlets as well as large organisations. Mr Bragg is representing the interests of smaller outlets including the Northern Beaches Advocate and Junkee Media.

In the letters, seen by The Sydney Morning Herald and The Age, Mr Bragg asks the tech giants specific questions about how small outlets will be treated compared to larger outlets. The main concerns outlined in the letters are related to competitive neutrality and access to staff at the tech giants to inquire about payment.

Google did not directly respond to the letter while Facebook’s head of policy for Asia Pacific, Simon Milner, assured Mr Bragg the company was doing its best. Mr Bragg said in a response to Mr Milner’s letter that one outlet would need to make five redundancies – half of its editorial headcount – if a deal wasn’t struck in May. The companies have asked for meetings with Mr Bragg, which were accepted on the grounds Google and Facebook answer his questions in writing. They are yet to answer the questions.

A Google spokesperson said the company had signed deals with 100 publications. “We are pleased to be making such progress,” the spokesperson said.

Nine signed its agreements with Google and Facebook on Tuesday, deals which it said will back digital journalism in its publishing and television newsrooms over the next five years. The media company owns The Herald and The Age, as well as a television network, radio stations 2GB and 3AW, streaming service Stan and a majority stake in real-estate listings company Domain.

The deals are in addition to the agreements struck with News Corp Australia, owner of The Australian, The Daily Telegraph and Herald Sun, and Seven West Media. Mr Bragg said the smaller publishers found the tech giants difficult to deal with.

“I would agree [they are hard to deal with],” he said. “It’s really important that the promise to support small publishers is a material promise. We won’t forget it.”

Country Press Australia - which represents the interests of 140 local newspapers - recently tried an alternative measure to secure payment for its members. It applied to the competition regulator to negotiate collectively, an authorisation which can be awarded under law. Facebook has written to the ACCC warning against this authorisation because it has already offered some members a “commercial investment”.

“We do not agree with the interim authorisation’s view that this authorisation is necessary for negotiations to be conducted outside of the Code,” it said in a submission to the ACCC.

The federal government’s news media bargaining code was legislated in February. It forces Google and Facebook into commercial talks with large and small news media companies for use of articles in the search engine and “newsfeed” and the tech giants can be slapped with financial penalties for failing to comply. Because of the concessions put in place to ensure Google and Facebook do not leave the market altogether, the laws are not currently “designated” (applicable) to the tech giants.