Media laws: Josh Frydenberg unveils landmark legislation

Josh Frydenberg unveils the government’s new media code, aimed at forcing tech giants to pay for their content.

Treasurer Josh Frydenberg announces the new media code. Picture: NCA NewsWire / Gary Ramage

Josh Frydenberg has unveiled pioneering new legislation that will force Google and Facebook to pay Australian news outlets for their content, declaring the “world will be watching” the proposed reforms.

However, in a shift since the Treasurer announced the media code in July, the tech giants will be able to factor in the monetary worth of the online readers they deliver to news websites when determining how much money is owed to publishers.

Mr Frydenberg confirmed a “value exchange” would be factored into final deals, taking into account the “benefits that traditional news media businesses get by having eyeballs on their product”.

The legislation, which will be introduced to parliament tomorrow and referred to a Senate committee for further consideration, was backed by the party room on Tuesday.

“Our legislation will help ensure the rules of the digital world mirror the rules of the physical world,” Mr Frydenberg said.

He said the code will ensure that the media landscape is “more sustainable and more viable” and the terms of the contracts between the tech platforms and news organisations will be determined by both parties.

However, the legislation will include a final arbitration model to resolve disputes when the tech giants and news companies fail to strike a commercial agreement.

“We want deals to be struck with parties outside the code. Commercial organisations that are conducted in good faith,” Mr Frydenberg said.

Under the mandatory code, which has been supported in-principle by Labor, Mr Frydenberg will be handed powers to designate other tech giants, namely YouTube and Instagram, in addition to Google Search and Facebook News Feed.

Communications Minister Paul Fletcher said the ABC and SBS had been added to the final code and confirmed the ABC would invest any additional revenue raised through the mechanism into regional journalism.

Regular updates of algorithm changes, a significant commercial liability for traditional news outlets, will also be included under a series of “minimum standards”.

Following the announcement opposition treasury spokesman Jim Chalmers said Labor has been left in the dark about the code.

Mr Chalmers said Labor was open to a dialogue with the Morrison government on the proposed reforms.

“We do support efforts to get this important area of policy right,” he said. “If the government genuinely wanted an outcome rather than another announcement, they would have engaged with us by now.”

‘Significant step’

News Corp Australasia Executive Chairman Michael Miller has called Josh Frydenberg’s media code a “significant step towards fairness” when it comes to sharing advertising revenue with the tech giants.

Mr Miller said he believed the code, which will be tabled in Parliament on Wednesday, will provide a framework that enables journalists and media organisations to be compensated for their work.

“All we have ever sought is a fair commercial outcome and fair payment for the valuable news content our journalists create. I believe this code puts in place the framework for this to be achieved,” he said.

“As a result of their lobbying, the tech platforms have won concessions, and there should be nothing stopping them now from reaching fair commercial agreements.”

Mr Miller said the code would benefit consumers by helping to sustain the news produced by Australian media companies.

“I understand why, in the face of the Covid crisis, the code will not be made law this year as originally planned, and I look forward to working with all participants to have the code in place in early 2021,” he said.

“I thank the ACCC, the federal government and other parties that have set Australia up to achieve this landmark piece of legislation.”

Unveiling the code on Tuesday Mr Frydenberg said the code would ensure the media landscape is “more sustainable and more viable”.

He said the terms of the contracts between the tech platforms and news organisations will be determined by both parties. However, the legislation will include a final arbitration model to resolve disputes when the tech giants and news companies fail to strike a commercial agreement.