‘Deeply Misled’: Nine Says News Bargaining Plan Could Cost Jobs

The federal government’s latest tweak to its news bargaining plan has sent shockwaves through the media industry, with Nine warning that jobs are on the line if the bill goes ahead in its current form. The proposed changes cap how much any single deal can count towards a platform’s liability, effectively flattening the market and giving large tech giants the same maximum credit for a deal with a small outlet as for one with a major publisher like Nine.

This move flies in the face of the government’s claims to be supporting local journalism. The problem is not just that it will make it harder for smaller publishers to negotiate decent deals with tech giants, but also that it reinforces the existing power imbalance between these companies and the media outlets they rely on for content. By capping liability at 16.67 per cent, the government is essentially saying that the value of a single article or broadcast is equivalent to the revenue generated by a major network.

Nine chief executive Matt Stanton pointed out in a statement that his company has already made significant cuts to its newsroom staff and this bill could make further losses a real possibility. Smaller publishers are also crucial to the health of our democracy, providing vital coverage of regional areas and diverse communities.

The government’s response to criticism from media companies has been predictable: Assistant Treasurer Daniel Mulino claims that the money reaching media companies will remain unchanged, with commercial deals delivering $200 million to $250 million a year. However, this misses the point entirely – it’s not just about the money; it’s about the principles at stake.

The news bargaining code was supposed to be a way of forcing tech giants to pay for the use of Australian journalism, but in its current form, it’s little more than a hollow promise. By capping liability and giving large platforms the same credit for small deals as big ones, the government is effectively engineering commercial outcomes that distort the market.

This is not just a failure of media policy; it’s a failure for our democracy. As Stanton noted, Nine’s journalism has led to significant changes in laws and policies, but this bill puts local journalism at risk. That’s the opposite of what we all set out to achieve – a thriving, independent media sector that holds power to account.

The news bargaining code is not just a new policy; it’s the culmination of a long history of failed attempts to regulate tech giants and support local journalism. The 2021 code, which was meant to force Meta and Google to pay Australian publishers for their content, lacked the mechanisms to stop them from walking away.

This latest tweak only reinforces the existing power imbalance between tech companies and media outlets. Smaller publishers are still essential to the health of our democracy, providing vital coverage of regional areas and diverse communities.

The government’s claim that commercial deals will deliver $200 million to $250 million a year is little more than a distraction from the real issue at hand – it’s not about the money; it’s about the principles at stake. The value of local journalism, the power of tech giants, and the future of our democracy are all at risk.

The news bargaining code is part of a global struggle between tech companies and media outlets. Other countries are grappling with how to regulate these giants and support local journalism. In the US, there have been ongoing debates about Section 230, which gives tech companies immunity from liability for user-generated content. In Europe, regulators are cracking down on big tech, imposing fines and penalties for failing to comply with data protection laws.

If this bill goes ahead in its current form, it will have serious implications for local journalism not just in Australia but around the world. It’s time for the government to rethink its approach and put the principles of local journalism at the heart of its policy. Smaller publishers are essential to our democracy, providing vital coverage of regional areas and diverse communities.

Ultimately, this is not just a matter of commercial arithmetic; it’s about the very survival of local journalism.