Digital News Bill Backing A Big Shift By Government

Tuesday, 2 July 2024, 2:20 pm
Article: RNZ

Colin Peacock, Mediawatch Presenter | From Mediawatch

The government has confirmed it will back legislation it had opposed in opposition which will compel tech giants to pay for the local news content their platforms. There will be amendments to the Bill introduced by Labour last year, which based on a similar move which has created significant revenue for some media companies in Australia.

The coalition government has spent much of its first months in power reversing initiatives put in place by the former regime. But not this time.

In opposition, National's media spokesperson Melissa Lee called the Fair Digital News Bargaining Bill "a shakedown." When she became the minister last year she said she didn't support it "in its current form" but allowed the Bill to go through the Select Committee process.

"I have looked closely at the design of the legislation and will be changing the approach to align more closely with the Australian digital bargaining code to give all companies greater certainty," the minister for media and communications Paul Goldsmith said today.

He said "a ministerial designation framework" will enable him to decide which digital platforms are captured, allowing the Government "to manage unintended consequences."

An appropriate independent regulator will be appointed to oversee the process, he said.

New moves to ease media crisis

Goldsmith has also announced the New Zealand Screen Production Rebate rules will be tweaked to make local TV shows "with strong industry and cultural value" eligible, including Shortland Street.

“I have spoken to NZ On Air about the role it can play in supporting local news and current affairs. They have committed to reporting back to Cabinet on progress by the end of the year."

The changes come too late to save the industry and cultural value of Fair Go, Sunday and the TVNZ news bulletins closed down by TVNZ in May to cut costs and the state-owned broadcaster.

Goldsmith also indicated a fuller legislative review of media policy is underway. Recent reports suggest elements of this have been aired in Cabinet this month.

"Much of the legislation underpinning our media landscape is outdated and stifling innovation. While full legislative review takes time, we are starting by removing outdated advertising restrictions for Sundays and public holidays," Goldsmith said today.

Most media companies - who stand to benefit - backed the Fair Digital News Bargaining Bill, while the lobby group Better Public Media instead backed the idea of levying the revenue of large digital platforms.

Google and Meta opposed the Bill, arguing its backers misunderstood the nature of the digital news market and the value of local news within it.

In 2022 news producers represented by the umbrella group the News Publishers Association secured Commerce Commission approval to bargain collectively with Google and Meta (owner of Facebook).

There are also reservations within the coalition.

Opposition within

ACT has invoked the ‘agree to disagree’ provisions of its coalition agreement and will oppose the Fair Digital News Bargaining Bill.

“The Bill’s a failed Labour inheritance our partners just can’t shrug off. It’s one of those things you do when you don’t know what else to do”, says ACT Leader David Seymour.

"The Fair Digital News bargaining Bill . . . is unlikely to change the underlying reality that media companies need to adapt, innovate, and provide a product customers want to buy, just like any other business."

Seymour said supporters of the Bill estimated it could return only $30m to local media.

in 2022 the architect of Australia's News Media Bargaining Code, Rod Sims - dubbed "the man who forced Google and Meta to pay for news" - told Mediawatch the income could be more substantial.

"I know for a fact that the payments here were well in excess of A$200m - so NZ$40 to $50m sounds absolutely the right number to be spread across all media," he said.

Goldsmith said the leaders of the three coalition parties have agreed ACT can hold a differing view.

But Labour, which introduced the Bill to Parliament too late in its term to make it law, is likely to support the Bill, depending on the nature of the amendments the government proposes.

The Select Committee considering the Bill suggested an amendment allowing for charging online operators if local news was used by their AI technology innovations - something the previous media minister Melissa Lee had previously highlighted as a significant omission.

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