Australian News Chief Calls for Social Media Payments in New Code

June 21, 2024 TruthUSA

News Corp Australia Chairman emphasized that social media platforms have experienced rapid growth in recent years and therefore should be included in the Code.

News Corp Australia Executive Chairman Michael Miller urged the federal government to extend the News Media Bargaining Code to major social media platforms to ensure they compensate Australian news outlets for using their content.

The News Media Bargaining Code, implemented in March 2021, aims to address the power imbalances between digital platforms and Australian news organizations, allowing the latter to negotiate payments for content displayed on digital platforms.

Although the treasurer has the authority to subject digital platforms to the Code, no platforms have been designated yet.

Nonetheless, Google and Meta were prompted to reach commercial agreements with numerous news organizations following the introduction of the Code.

The government estimates that Australian media companies have received up to $200 million (US$130 million) from these deals so far.

In March 2024, Meta declared that it would not renew the contracts, leading to strong objections from the Labor government and media outlets.

News Corp Boss Calls for Social Media Platform Inclusion

During a parliamentary hearing on June 21, Mr. Miller stressed the importance of removing the exemption for YouTube and other social media platforms under the Code.

Mr. Miller highlighted that these platforms have significantly expanded since the initial introduction of the Code.

“Over that time, Instagram has grown substantially, particularly through video content, to a significant scale,” he explained.

“TikTok has also seen significant growth, particularly among a young audience where they dominate a large segment of the most vulnerable audience in Australia. Furthermore, YouTube has also experienced growth during that period.”

Although earnings from YouTube contribute only 0.00003 percent of News Corp Australia’s total revenue, Mr. Miller referenced a study by the University of Canberra (pdf) indicating that the platform has become the second-largest source of news for Australians.

Mr. Miller argued that with the evolution of the social media landscape, it is essential to incorporate major digital platforms into the Code.

“The recent report from the University of Canberra illustrates how various platforms have transformed and expanded their news content over the last few years,” he added.

“While Facebook’s influence may have decreased slightly, YouTube, Instagram, X, Facebook Messenger, TikTok, WhatsApp, and LinkedIn have all shown growth. Therefore, they should all be encompassed within the Code.”

A smartphone and a computer screen displaying the logos of the social network Facebook and its parent company Meta in Toulouse, southwestern France, on Jan. 12, 2023. (Lionel Bonaventure/AFP via Getty Images)

News Corp Boss Proposes Banning Meta

As the hearing progressed, parliamentary committee members raised concerns that Meta could continue operating in Australia even without the Code and without contracts with news organizations.

In response, Mr. Miller suggested that the government should establish additional legislation requiring Meta to comply with Australian laws while operating in the country.

“If they refuse to adhere to our regulations, we should consider banning them, similar to other companies that fail to comply with Australian laws and regulations and are unable to operate here, such as mining companies and telecommunications firms,” he stated.

“We have laws in place, so why should we provide them with a level playing field if they disregard Australian laws and fail to uphold Australian values?

“We cannot allow a scenario where a social media platform can operate in the country, receive benefits and revenue, but avoid compliance with the code.”

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