Virus, big tech a ‘one-two’ blow for media, says ACCC’s Rod Sims

ACCC chair Rod Sims says media organisations have been dealt a double blow by tech giants and the COVID-19 pandemic.

Australian Competition and Consumer Commission chairman Rod Sims. Picture: AAP

ACCC boss Rod Sims has described the impact of the digital platforms and the coronavirus as a “one-two blow” for Australia’s media in the wake of News Corp Australia’s decision to suspend printing 60 community newspapers.

The ACCC had recommended to government as part of its digital platforms inquiry a new code of conduct for interactions between media companies and digital platforms like Google and Facebook that would allow revenue to be given to the creators of original journalism.

Mr Sims said he was confident the code of conduct would make a difference to the viability of media companies in Australia.

“Our media companies are in a great difficulty … the bargaining code that we are facilitating between the platforms and the media companies is just that more urgent,” Mr Sims told the ABC.

His statements came as German publishing giant Bauer announced plans to shut its New Zealand magazine business and placed its Australian operation under review.

The competition boss said he had no doubt that the failure of digital platforms to pay for content contributed to the decline of Australian media companies in an equal manner to the coronavirus, describing it as a “one two blow.”

“They were very much weakened by the impact of the digital platforms. There’s no doubt about that. Digital platforms, then corona.”

On Wednesday News Corp Australasia Executive chairman Michael Miller singled out government inaction in the media space and the role of the digital platforms in hastening the demise of media in Australia.

2020 News Corp staff Town Hall at the HWT Tower, Melbourne. Picture: Mark Stewart

Mr Miller said if there was not significant progress on the drawing up of a commercial agreement between the media companies and the digital platforms by May, then the government should bring forward a compulsory code as it had promised.

However Mr Sims did not commit to bringing forward the timeline for settlement of the new code, saying a progress report was due in May and a timeline to draw up an agreement running until November.

“We are putting more resources into that. That has to get settled this year, I’m confident that it will. and I’m confident that it will help the media sector considerably,” he said.

Communications Minister Paul Fletcher welcomed Mr Miller’s committment to saving as many jobs as possible but linked the suspension of the printed titles with “global trends” and deflected criticism of the government citing the COVID-19 crisis.

“The economic challenges wrought by COVID-19 are unprecedented. Never before have we had to put entire sectors of the economy into hibernation in order to face such a public health threat.

“News Corp’s decision is consistent with global trends to move newspapers completely online, reflecting changes in how people consume their news. I welcome News Corp’s commitment to preserve jobs.”

Mr Fletcher said that he would take digital platfomrs needed to do more “to improve the transparency of their operations for news media providers” but would await the findings of the progress report in May.

“The Government agrees that the digital platforms need to do more to improve the transparency of their operations for news media providers.

“That’s why the Government asked the ACCC to work with the relevant parties to develop and implement a voluntary code.

“The Government has also made it clear that if the media companies and digital platforms cannot reach agreement by November 2020, it stands ready to step in,” Mr Fletcher said.