Australia’s Facebook brawl sparks international action with tech giants; European news outlets team with Microsoft for media code

European news publishers and Microsoft push for a media code amid News Corp talks with Facebook over its sweeping ban.

Facebook was branded "arrogant" and "unconscionable" for banning Australian users from sharing news on February in its defiant response to government regulation. Picture: Daniel Leal-Olivas/AFP

Europe’s news publishers and Microsoft have teamed to push for a news media bargaining code, as Australia’s bloody brawl with tech giants expands to multiple new fronts overseas.

The EU’s major publishing groups including European Magazine Media Association, European Newspaper Publishers’ Association, European Policy Centre, News Media Europe and Microsoft are calling for the Digital Single Market Copyright Directive – which comes into force in June – to be expanded to include a law that would ape Australia’s media bargaining code laws, which are set to pass this week.

“The experiences in France and Australia have shown us that there’s a real need for a binding instrument to address inherent imbalances in bargaining power with gatekeepers, which undermine the potential of Europe’s press sector,” Fernando de Yarza, President of News Media Europe said.

“We look forward to working with Microsoft and others on a solution that allows for a healthy and diverse online news media ecosystem”.

Meanwhile, News Corp Australia is in talks with Facebook after its sweeping ban last week on Australian news content, as the Morrison government’s media bargaining code edges closer to passing parliament.

On Tuesday, News Corp Australia executive chairman Michael Miller said in a statement that Facebook misread the mood of the nation when its news ban also captured state health services, emergency fire departments, domestic violence prevention hotlines, and cancer charities.

Mr Miller said on Tuesday that News Corp were in talks with Facebook but he looked forward to the media bargaining code - which sets up a framework for big tech companies to pay news organisations for their content - passing the senate as early as this week.

“Facebook has misread the mood of Australians and their actions have attracted worldwide attention - and universal criticism,” he said in a statement.

“I can tell you that we are in continuing conversations with Facebook but we have not reached an agreement yet.

“At the same time, the media bargaining code of conduct legislation that is so crucial in this issue is listed for debate in the Senate this week and I am hopeful it will become law as early as this week.”

The media bargaining code entered the Senate late on Monday night and will likely pass as early as Wednesday. Labor will support the bill, despite the government deciding to not pursue any more amendments after the Facebook news ban.

Jean-Pierre de Kerraoul, President of ENPA said a European bargaining code should include arbitration provisions, to ensure fair agreements are negotiated. Australia‘s so-called baseball arbitration provisions – in which an arbitrator picks one of two offers – are one of the most contentious aspects of the local laws, with tech giants arguing they will lead to unfair outcomes.

“The internet and social media have not been kind to the free press with most outlets hit hard,” he said. ”A fully functioning and competitive ecosystem will strengthen media pluralism and will ultimately strengthen democratic discourse. Democracy relies on a free press to make it through difficult times.

“Any legislative proposal that strengthens democracy and supports a free press should be promoted by the technology industry, which is a product of the very same freedoms and values.”

Australia’s action backed

Europe’s competition regulator has also strongly backed Australia’s actions.

Canada has already flagged it will follow Australia’s lead and force the likes of Google and Facebook to pay for news, and there are growing calls for the US to do the same.

“There is a worldwide movement to renegotiate the terms of trade for news content, similar to what music did with licensing in the 1920s and TV did with retransmission in the 1990s,” president and CEO of the US-based News Media Alliance, David Chavern, told The Australian.

“The larger publishers currently have some capacity to get voluntary, one-off deals, but those arrangements are underpriced and leave out lots of small and local publishers. The only equitable answer is mandatory bargaining codes backed by law.

“Australia has taken a true leadership position that is already influencing the debate in the US and Europe. We expect the US Congress to take action in support of news publishers and, while it may not be identical to the Australian approach, it will accelerate us towards a more sustainable market for news content.”

‘Schoolyard bully’

Meanwhile chairman of News Media UK Faure Walker said Facebook’s sudden ban on news in Australia during a global pandemic is a classic example of a monopoly power being the ‘schoolyard bully’, trying to protect its dominant position with scant regard for the citizens and customers it serves.

“The recent deals struck between Google in Australia and news publishers are a welcome acknowledgment of the principle that independent journalism has to be paid for,” Mr Walker said.

“However, Facebook’s actions in Australia demonstrate precisely why we need jurisdictions across the globe, including the UK, to co-ordinate to deliver robust regulation to create a truly level playing between the tech giants and news publishers.”