ACCC calls for consultation to set new bargain between Google, Facebook and media

The ACCC wants submissions for rules that will set a new bargain between digital giants Google and Facebook and the Australian media.

The ACCC is moving ahead with a code that will force Google and Facebook to pay for news. Picture: AFP

Australia's competition watchdog has called for help in drawing up a draft news media and digital platforms bargaining code, which would force technology giants Google and Facebook to pay media companies for the news they carry on their platforms.

The ACCC’s concepts paper sets out a range of issues for which it wants feedback and information, including what should be included in the draft bargaining code and how particular issues should be addressed.

The concepts paper includes 59 consultation questions, including how “news” should be defined for the purpose of determining the type of content to be subject to the bargaining code. In addition it will cover how a bargaining code can “ensure that both news media business and digital platforms can easily and objectively identify the content subject to the code”.

ACCC chairman Rod Sims said regulators were "keen to tap views on all the issues and ideas involved with this code" following the release of a so-called concepts paper on Tuesday morning.

"Given the tight time frame we are seeking precise views on the content of the code and this concepts paper will facilitate this,” he said in a statement.

“Our digital platforms inquiry highlighted the acute need to address the imbalance in bargaining position between news media and particular digital platforms, and that is what the code will do.”

The Morrison government announced last month it had directed the ACCC to develop a mandatory code of conduct to address bargaining power imbalances between Australian news media businesses and tech companies.

Submissions on the draft news media and digital platforms bargaining code must be submitted to the ACCC by June 5.

Recently Nine Chairman Peter Costello said he believed revenue from the platforms could be worth $600 million a year, while News Corp Australasia executive chairman Michael Miller has said it could be as high as $1 billion.

The ACCC said the federal government has asked that a draft mandatory code be released for public consultation before the end of July, with a final code to be settled shortly afterwards.

Key issues will be new revenue sources for media organisations as well as the imbalance in negotiating power between media and the platforms were two key issues to be addressed.

Mr Sims told reporters today there was “clearly value in news” to the platforms that went beyond the advertising associated with it.

“It’s really about what is the value of news? Collectively, the platform to what extent Google and Facebook want to be the go to destinations for all things that people want to search or in terms of social media. What’s it worth to them to have news as part of that mix? That’s I think the question that really Google and Facebook haven’t been addressing.”

“Google and Facebook need news generally but they don’t need any particular news area … that’s real market failure issue that can do real damage to journalism,” Mr Sims said.

A spokesman for News Corp (publisher of The Australian) today welcomed Mr Sims announcement calling the ACCC “world leading on these issues.”

“In particular we welcome the focus on the two key issues for the code, ensuring payment for news media content and addressing the imbalance in bargaining power. We look forward to continuing our active participation in these consultations to address this imbalance between the digital platforms and news media.”