Australian media are set to be able to bargain with Google and Facebook to quickly secure fair payment for news content if a draft mandatory code released by the Australian Competition and Consumer Commission (ACCC) is adopted.
The Commission said the draft code was aimed at addressing acute bargaining power imbalances between Australian news businesses and the giant social media platforms, including through a binding ‘final offer’ arbitration process.
“If the news businesses and the digital platforms cannot strike a deal through a formal three month negotiation and mediation process, then an independent arbitrator would choose which of the two parties’ final offer is the most reasonable within 45 business days,” the ACCC said.
“This would ensure disagreements about payment for content are resolved quickly,” it said.
“Deals on payment could be reached within six months of the code coming into effect if arbitration is required.”
ACCC said the draft code would also allow groups of media businesses to collectively negotiate with the platforms.
Chair of the ACCC, Rod Sims said there was a fundamental bargaining power imbalance between news media businesses and the major digital platforms, partly because news businesses had no option but to deal with the platforms, and have had little ability to negotiate over payment for their content.
“We wanted a model that would address this bargaining power imbalance and result in fair payment for content, which avoided unproductive and drawn-out negotiations, and wouldn’t reduce the availability of Australian news on Google and Facebook,” Mr Sims said.
Mr Sims said further consultation on the draft mandatory code would take place during August, ahead of the code being finalised shortly after.
