Microsoft endorses proposed digital media bargaining code

Microsoft has endorsed the federal government’s proposed news media and digital platform bargaining code and announced that the company stands ready to abide by the regulations.

In a not-so-veiled shot at search archrival Google, Microsoft President Brad Smith said the company has no intention of exiting the Australian market if the proposed code becomes law.

“One thing is clear: while other tech companies may sometimes threaten to leave Australia, Microsoft will never make such a threat,” he said. “We appreciate what Australia has long meant for Microsoft’s growth as a company, and we are committed to supporting the country’s national security and economic success.”

While the code as proposed would not apply to Microsoft, as it is aimed in part in addressing Google’s dominance of the Australian search advertising market, Smith said Microsoft would be “willing to live by these rules” if Microsoft does get designated in future.

“Microsoft recognises that the media sector and public interest journalism currently face many challenges from the digital era, including changing business models and evolving consumer preferences. That is why Microsoft has long supported the Australian Competition and Consumer Commission’s (ACCC) efforts to analyse these issues and propose world-first solutions,” he said.

“Microsoft fully supports the News Media Bargaining Code. The code reasonably attempts to address the bargaining power imbalance between digital platforms and Australian news businesses. It also recognises the important role search plays, not only to consumers but to the thousands of Australian small businesses that rely on search and advertising technology to fund and support their organisations.”

The company also jumped on the recent controversy involving Google’s threats to withdraw from the market if the “unworkable” mandatory code is put into effect by committing to ensuring that small businesses wishing to transfer their advertising to Bing can do so simply and with no transfer costs.

“We recognise the important role search advertising plays to the more than two million small businesses in Australia,” Smith said.

“We will invest further to ensure Bing is comparable to our competitors and we remind people that they can help; with every search, Bing gets better at finding what you are looking for.”

Smith said he and Microsoft CEO Satya Nadella made these commitments during a conversation with Australian Prime Minister Scott Morrison and Communications Minister Paul Fletcher last week.

Pictured: Microsoft President Brad Smith. Courtesy Microsoft.