Abstract
The Australian News Media and Digital Platforms Mandatory Bargaining Code, legislation requiring large digital platforms to pay news publishers for content that the platforms display, represents the next front in the war to regulate Big Tech. Its ostensible purpose is to provide financial support to publishers and journalists outcompeted by the dominance of digital platforms—namely Google and Facebook—and, by extension, protect democratic institutions. In this chapter, I outline the different approaches Google and Facebook used in their counterattacks to the Code and how their different business models resulted in a more advantageous outcome for Facebook. There are many concerns regarding the Code’s impact on small publishers and net neutrality, and while it is a promising first step to support publishers, I argue that the Code may not achieve its stated goals. Furthermore, Facebook’s aggressive actions may have harmed its overall position when considering possible future regulation.
Keywords
- News media and digital platforms mandatory bargaining code
- Australia
- Big tech
- Journalism
- Democracy
- Platform regulation
This chapter was adapted and expanded from (Hine, 2021), the author’s newsletter on technology ethics.
This is a preview of subscription content, access via your institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsNotes
- 1.
Net neutrality is the principle that all links on the internet should be treated equally and free to access. The business model of search engines, which provide links to users, is possible because search engines do not have to pay to display certain links.
- 2.
An experiment by deals site Groupon showed that de-listing their site from Google showed that search-engine-attributable search dropped to near-zero, while “direct” visits also dropped by 60% (McKenna, 2014).
- 3.
Free Basics, a Facebook-developed app that gives users free access to a Facebook-selected list of websites, has itself been criticized for infringing on net neutrality, as well as encouraging clickbait and “digital colonialism.” Mark Zuckerberg’s position that “Arguments about net neutrality shouldn’t be used to prevent the most disadvantaged people in society from gaining access or to deprive people of opportunity” shows that Facebook sees net neutrality as one tool in its efforts for platform supremacy that can be deployed and discarded at will (Solon, 2017).
References
A Bill for an Act to amend the Competition and Consumer Act 2010 in relation to digital platforms, and for related purposes, no. 177/20, Parliament of Australia. (2021). https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22legislation/bills/r6652_aspassed/0000%22
Associated Press. (2021, February 17). Google strikes deals with Australian news publishers, while Facebook cuts off sharing. MarketWatch. https://www.marketwatch.com/story/google-strikes-deals-with-australian-news-publishers-while-facebook-cuts-off-sharing-01613600522
Barbaschow, A. (2020, December 10). Media Bargaining Code enters Parliament despite Google and Facebook’s best efforts. ZDNet. https://www.zdnet.com/article/media-bargaining-code-enters-parliament-despite-google-and-facebooks-best-efforts/
Barbaschow, A. (2021, February 23). News to remerge on Facebook in Australia after deal struck with government. ZDNet. https://www.zdnet.com/article/news-to-remerge-on-facebook-in-australia-after-deal-struck-with-government/
Binkowski, B. (2019, February 8). Opinion: Fact-checking Facebook was like playing a doomed game of whack-A-mole. BuzzFeed News. https://www.buzzfeednews.com/article/brookebinkowski/fact-checking-facebook-doomed
Boom, D. V. (2021, February 14). Google’s fight in Australia could change the future of media. CNET. https://www.cnet.com/news/googles-fight-in-australia-could-change-the-future-of-media/
Brown, C. (2021, February 23). The Value of News on Facebook. https://www.facebook.com/journalismproject/news-australia-decision
Cellan-Jones, R. (2021, February 19). Tech Tent: Facebook v Australia - two sides to the story. BBC News. https://www.bbc.com/news/technology-56120281
Cerf, V. (2020, November 23). A fair code for an open internet. Google: The Keyword. https://blog.google/around-the-globe/google-asia/australia/fair-code-open-internet/
Chan, K. (2021, April 23). Microsoft, EU publishers seek Australia-style news payments. AP News. https://apnews.com/article/europe-media-news-industry-europe-f33528aa575b2acf75c98ad99ecb0975
Choudhury, S. R. (2021, February 25). Australia passes new media law that will require Google, Facebook to pay for news. CNBC. https://www.cnbc.com/2021/02/25/australia-passes-its-news-media-bargaining-code.html
Dunne, R. (2021, February 3). Bing steps up to replace Google in Australian search showdown. Search Engine Journal. https://www.searchenginejournal.com/bing-replace-google-australia-search/394544/
Dye, J., & McGuire, A. (2021, February 18). Facebook news ban: BOM, Queensland Health, Cricket Australia, others removed. Sydney Morning Herald. https://www.smh.com.au/national/facebook-news-ban-hits-emergency-services-and-government-health-departments-20210218-p573ks.html
Easton, W. (2021, February 17). Changes to sharing and viewing news on facebook in Australia. About Facebook. https://about.fb.com/news/2021/02/changes-to-sharing-and-viewing-news-on-facebook-in-australia/
Fernandez, R., Adriaans, I., Klinge, T. J., & Hendrikse, R. (2021, February 5). How Big Tech is becoming the Government. SOMO. https://www.somo.nl/how-big-tech-is-becoming-the-government/
Floridi, L. (2016, November 29). Fake news and a 400-year-old problem: We need to resolve the ‘post-truth’ crisis. The Guardian. http://www.theguardian.com/technology/2016/nov/29/fake-news-echo-chamber-ethics-infosphere-internet-digital
Frydenberg, J., & Fletcher, P. (2020, December 8). News media and digital platforms mandatory bargaining code | Treasury ministers. Australian Government: The Treasury. https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/news-media-and-digital-platforms-mandatory-bargaining
Hine, E. (2021, February 23). ER4: An Australian love triangle/shipwreck. The Ethical Reckoner. https://ethicalreckoner.substack.com/p/er4-an-australian-love-triangleshipwreck
Karadeglija, A. (2021, February 11). Heritage Minister Steven Guilbeault pledges to press ahead with forcing tech giants to pay for news. National Post. https://nationalpost.com/news/heritage-minister-steven-guilbeault-pledges-to-press-ahead-with-forcing-tech-giants-to-pay-for-news
Kohler, A. (2021, March 16). The News Bargaining Code is officially dead. The New Daily. https://thenewdaily.com.au/news/2021/03/17/alan-kohler-news-bargaining-code-dead/
Letts, S. (2016, January 29). Global internet giants crushing Australian media. ABC News. https://www.abc.net.au/news/2016-01-29/global-internet-giants-crushing-australian-media/7125458
Lewis, P. (2020, September 8). The stakes are high for Facebook and Google if Australians decide to get their news elsewhere. The Guardian. https://www.theguardian.com/australia-news/commentisfree/2020/sep/08/the-stakes-are-high-for-facebook-and-google-if-australians-decide-to-get-their-news-elsewhere
McKenna, G. (2014, July 8). Experiment shows up to 60% of ‘direct’ traffic is actually organic search. Search Engine Land. https://searchengineland.com/60-direct-traffic-actually-seo-195415
Meyer, A. C. M., Robinson. (2018, October 18). How Facebook’s chaotic push into video cost hundreds of journalists their jobs. The Atlantic. https://www.theatlantic.com/technology/archive/2018/10/facebook-driven-video-push-may-have-cost-483-journalists-their-jobs/573403/
Newton, C. (2021a, February 17). Australia’s bad bargain with platforms. Platformer. https://www.platformer.news/p/australias-bad-bargain-with-platforms
Newton, C. (2021b, February 18). Why Google caved to Australia, and Facebook didn’t. The Verge. https://www.theverge.com/2021/2/18/22288510/google-facebook-australia-news-media-bargaining-code
Purtill, J. (2021a, February 18). ‘The only news left’: Anti-vaccine pages unscathed by Facebook news ban. ABC News. https://www.abc.net.au/news/science/2021-02-18/facebook-news-ban-misinformation-spread-covid-vaccine-rollout/13167318
Purtill, J. (2021b, February 25). There was ‘definitely one loser’ in Facebook’s battle with the government. ABC News. https://www.abc.net.au/news/science/2021-02-26/facebook-google-who-won-battle-news-media-bargaining-code/13193106
Purtill, J. (2021c, March 2). These graphs tell the story of Facebook’s news ban—And what happened after. ABC News. https://www.abc.net.au/news/science/2021-03-03/facebook-news-ban-australian-publisher-page-views-rebound/13206616
Reality Check & BBC Monitoring. (2021, February 20). Facebook in Australia: What happened after news was blocked? - BBC News. BBC News. https://www.bbc.co.uk/news/56127158
Rigby, B. (2021, February 1). ‘What are we doing here? Trying to save the titanic that’s sinking?’: Small publishers testify on ‘potentially fatal’ impacts if platforms ‘bugger off’. Mumbrella. https://mumbrella.com.au/trying-to-save-the-titanic-thats-sinking-small-publishers-front-senate-in-media-code-battle-666638
Samios, Z. (2021, February 18). ‘Squashed’: Smaller publishers fear fatal consequences from Facebook’s news ban. The Sydney Morning Herald. https://www.smh.com.au/business/companies/squashed-smaller-publishers-fear-fatal-consequences-from-facebook-s-news-ban-20210218-p573sw.html
Schudson, M. (2020, October 5). The vital role of journalism in a liberal democracy. The MIT Press Reader. https://thereader.mitpress.mit.edu/journalism-in-a-liberal-democracy/
Silva, M. (2021a, January 6). Open letter—Update on the news media bargaining code in Australia—Google. https://about.google/google-in-australia/jan-6-letter/
Silva, M. (2021b, February 26). An update on the news media bargaining code—Google. About Google. https://about.google/google-in-australia/an-open-letter/
Smith, B. (2021, February 11). Microsoft’s endorsement of Australia’s proposal on technology and the news. Microsoft On the Issues. https://blogs.microsoft.com/on-the-issues/2021/02/11/endorsement-australias-proposal-technology-news/
Smyth, J. (2021, June 1). Australian regulator claims victory in scrap with Big Tech over news. Financial Times. https://www.ft.com/content/ad706bd3-2aed-49da-b4f4-862f15a2e601
Solon, O. (2017, July 27). ‘It’s digital colonialism’: How Facebook’s free internet service has failed its users. The Guardian. http://www.theguardian.com/technology/2017/jul/27/facebook-free-basics-developing-markets
Stilgherrian. (2021, March 5). Australia’s news media bargaining code is a form of ransomware, and someone paid up. ZDNet. https://www.zdnet.com/article/australias-news-media-bargaining-code-is-a-form-of-ransomware-and-someone-paid-up/
Taylor, J. (2021, February 18). Facebook’s botched Australia news ban hits health departments, charities and its own pages. The Guardian. http://www.theguardian.com/technology/2021/feb/18/facebook-blocks-health-departments-charities-and-its-own-pages-in-botched-australia-news-ban
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Hine, E. (2022). The Impact of Australia’s News Media Bargaining Code on Journalism, Democracy, and the Battle to Regulate Big Tech. In: Mökander, J., Ziosi, M. (eds) The 2021 Yearbook of the Digital Ethics Lab. Digital Ethics Lab Yearbook. Springer, Cham. https://doi.org/10.1007/978-3-031-09846-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-031-09846-8_5
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-09845-1
Online ISBN: 978-3-031-09846-8
eBook Packages: Religion and PhilosophyPhilosophy and Religion (R0)