Senate committee finds media code should become law

The Morrison government will seek to enshrine its landmark news media bargaining code in law within the fortnight.

Tech giants Facebook are set to be bound by a new media code that is a step closer to reality. Picture: AFP

The Morrison government will present its landmark news media bargaining code to parliament on Monday, following a three-year campaign to rein in the unregulated market practices of the big tech companies.

A Senate committee that ­reviewed the government’s mandatory media code has recommended the bill be passed, with Labor offering in-principle support. The bill in its current form would require the big tech companies, namely Google and Facebook, to compensate news media publishers for their content when it is displayed on their platforms.

The code would also address bargaining power imbalances ­between news media organisations and the tech companies.

The Weekend Australian ­understands the Morrison government will seek to push its legislation through the lower house on Monday. Debate on the bill could begin in the Senate as early as Tuesday, with the government hoping to have the code finally enshrined in law within a fortnight.

The government isn’t expected to amend the legislation but would consider minor amendments to get the code through the parliament.

The committee tabled its ­report on Friday afternoon, following hearings on January 22 and February 1, at which representatives of Google and Facebook, and media organisations (including News Corp Australia, publisher of The Weekend Australian) made presentations about the merits of the code. In its report, the Senate committee wrote: ­“The committee is confident that the bill will deliver on its intended outcomes. Its provisions will provide the basis for a more equitable relationship between the media and Google/Facebook and, through this, help safeguard public interest journalism in Australia. Accordingly, the committee recommends that the bill be passed.”

Three weeks ago, Google threatened to withdraw its search engine facility from the Australian market if the code became law, prompting Microsoft president Brad Smith to phone Scott Morrison to advise him his company’s search engine Bing could fill the potential void.

Facebook had previously pledged to stop its Australian users from sharing news on its platform if the code was legislated.

Treasurer Josh Frydenberg and Communications Minister Paul Fletcher welcomed the Senate committee report, and called on “all parties to continue to work constructively towards reaching commercial agreements”.

“The world-leading code was developed after extensive analysis from the Australian Competition & Consumer Commission, including almost three years of public consultation,” the statement said.

“The purpose of the code is to address the bargaining power ­imbalance identified by the ACCC between digital platforms and news media businesses in order to support a diverse and sustainable Australian news media sector, including Australia’s public broadcasters.

“The code creates a framework for the parties to reach commercial arrangements, so that news media businesses are fairly remunerated for the content they generate and which digital platforms benefit from.”

Under the legislation, the code will be reviewed by Treasury one year after its operation to “ensure it is delivering outcomes that are consistent with the government’s policy intent” — a stipulation the Greens had lobbied for.

While offering in-principle support, Labor is waiting for the government to reveal any amendments. Shadow cabinet and Labor caucus will need to approve the code before the opposition makes its final decision.

Opposition communications spokeswoman Michelle Rowland said given the potential ­impact of the legislation on “news media businesses, digital platforms, small businesses, citizens and consumers”, the government must move swiftly on amendments to “end the uncertainty and level the playing field”.

Google director of government affairs and public policy, Australia and New Zealand, Lucinda Longcroft on Friday night said: “As we’ve said since the draft was released in July last year, we remain committed to a workable code – the concerns that we, and others, have been raising consistently are about specific aspects of the code. We’ve proposed reasonable amendments, including fair arbitration and that the code apply to News Showcase, which is already paying publishers and supporting journalism in Australia, the UK and around the world.

“We look forward to engaging with policymakers through the parliamentary process to address our concerns and achieve a code that works for everyone – publishers, digital platforms, and Australian businesses and users,” she said.