ADA disappointed with move to mandatory code for news snippets

The Australian Digital Alliance (ADA) is “disappointed” by a government decision to progress a mandatory code of conduct for the media and digital platform industries, claiming the move will do more harm than good.

The code is designed to ensure that tech giants, such as Facebook and Google, don’t have unfair bargaining power over media in their negotiations over news snippets.

Under the proposed code, digital platform providers will be forced to give more equitable treatment in terms of data sharing, ranking and display of news content, and the monetisation of news, among other features. The code will also establish protocols for enforcement, penalty and binding dispute resolution.

The Morrison government said these interventions are vital, given the necessity for media firms to use these “unavoidable trading platforms”; and the lack of alternatives in the marketplace.

However, ADA is concerned that forcing technology platforms to pay for links to news content will limit news sharing and public dialogue, which they argue is necessary for democratic progress.

“It risks unintended consequences for the rights of individuals and the news market as a whole,” said ADA Executive Officer Jessica Coates.

“Similar mandatory schemes have been adopted in other countries, including Spain, Germany and France, and none have been successful in boosting revenues for news services.

“There is even evidence that they have harmed access to local news through independent publishers and journalists.

“It is premature for Australia to move to a compulsory code when we are yet to see their effects in other markets."

Government’s decision to steam ahead with the mandatory code also opposes the views of competition regulator ACCC, which suggests a voluntary code and nine-month negotiation period between the parties.

However, government has rejected this approach, instead accelerating the mandatory code option — given the added strain media firms are under during COVID-19.

A draft mandatory code will be released for consultation before the end of July, and a final code settled soon thereafter.

The Minister for Communications, Cyber Safety and the Arts said in a statement, “The Government is delivering a regulatory framework that is fit for purpose and better protects and informs Australian consumers, addresses bargaining power imbalances between digital platforms and media companies, and ensures privacy settings remain appropriate in the digital age.”

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