By Erika Koutroumpa,
The Fair Digital News bargaining bill was introduced as a concept in New Zealand in November 2022 and is expected to come into effect soon. The bill aims to change the terms under which news publishers bargain with digital platforms for the provision of their services. However, digital moguls have scrutinized this bill, with Google claiming earlier in October that if the government moves forward with this plan, they will withdraw all collaboration with local media outlets.
As more aspects of our lives shift into the online world, it is imperative to find realistic options for more traditional news outlets to stay in business. While direct government funding of the news media industry could potentially compromise public trust and journalistic independence, there is a growing consensus that some form of intervention is necessary. The aim is to create a more level playing field and support the continued production of quality news content, particularly in New Zealand.
Any intervention should strive to achieve two primary objectives: firstly, to diversify New Zealand’s news media landscape by allowing smaller and regional media companies to enter in good-faith negotiations with internet moguls. The second one is to secure freedom of speech in the media, by protecting their viability in the new digital landscape. With the Fair Digital News Bargaining Bill, the government would be able to partially negotiate on behalf of media outlets with internet corporations that are responsible for linking their stories on their platforms. Big companies like Google would have to pay a “link tax” to the government if they choose to link an article from a New Zealand news provider.
Similar legislations have been enforced already, such as in Canada in 2023, and the Australian digital bargaining law, which took effect back in 2021. However, such plans have been met with resistance by big tech moguls such as Google and Facebook. Google has claimed that following the bill’s enactment, they would be forced to move forward with significant changes in their business model for the New Zealand market. These would include the cessation of previous agreements with local news outlets and the company not linking articles from them in the future.
Furthermore, the tech giant’s representatives have asserted that for the news industry in New Zealand to be reinforced, a collaboration between the public and private sectors would have to be achieved. The potential income from these taxes is expected to be around 6 million AUD, but according to the Media and Communications minister, 30 million AUD are to be lost if the deal with Google falls through. According to the opposition party, ACT, the bill passing through would cause more harm than good for the New Zealand news audience, by undermining the separation between the government and the media. However, the party has currently adopted an “agree to disagree” stance on the matter.
To conclude, the Fair Digital News Bargaining Bill represents a move towards the mitigation of the ongoing challenges faced by traditional media outlets in the ever-evolving digital landscape. Despite pushback from industry giants like Google, which threatens to alter their collaboration with local media, there is a pressing need for a balanced approach that allows for fair negotiation and sustains quality journalism. As New Zealand is one step before implementing this legislation, the future of news media seems to rely on solutions that bridge the gap between the public’s right to information and the dynamics of the digital marketplace. Ultimately, finding a harmonious relationship between traditional media and digital platforms will be crucial for nurturing a robust and independent news ecosystem not just in this case, but in any other similar scenario.
References
- Fair Digital News and Bargaining Bill. Ministry of Culture and Heritage. Available here
- Fair Digital News and Bargaining Bill Explanatory Note. New Zealand Legislation. Available here
- New Zealand to press ahead with media content pay law. Reuters. Available here
- Google threatens to stop linking to NZ news sites if bill passes. RNZ. Available here
