New Zealand introduces bill to allow Google and Meta to negotiate with media outlets for use of news content

New Zealand’s broadcasting minister, Willie Jackson, has introduced a bill to require tech platforms such as Meta and Google to negotiate revenue from news that appears on their digital servers with media outlets.

The new legislative proposal explains that due to changes in how people consume news content, the “viability of traditional media business models has been “undermined.”

“News media is now accessed via online digital platforms,” the project explains, noting that while these platforms display news content to draw attention to their sites and make money through advertising and other services, they “do not effectively share that monetisation with the people who create the news content.”

According to the proposal, the public sector has helped the media stay afloat. However, he adds that this is precisely eroding trust in the media, so Jackson hopes that with this measure, news companies can also benefit from the money that Google and Meta receive.

The legislation would put the Broadcasting Standards Authority in charge of creating a trading code for digital platforms and news outlets, forcing both sides to negotiate in good faith and follow the agreements reached.

Likewise, the bill establishes that media companies will be able to bargain collectively, but in case an agreement is not reached, an arbitration panel will be resorted to, which will prevent the selection of an offer that could have “a serious adverse effect on people’s access to New Zealand news content” or in the production of news content.

Meta’s Chief Policy Officer reacts

“We have consistently said that legislation that ignores the realities of how our platforms work, their voluntary nature, the preferences of the people who use them and the free value we provide news publishers raises concerns,” said Nick McDonnell, Head of Policy for Meta in New Zealand and the Pacific Islands.

“We will continue to be open and transparent with the Government and publishers on our business decisions as this issue progresses. We have not been formally engaged on the draft bill, so will now look at what is being proposed,” he added.

Google and Meta have already blocked news in Canada

With this bill, New Zealand risks ending up like Canada, where Meta and Google decided to block access to news after considering it “unfeasible” to put prices on the published links on their platforms.

However, Merja Myllylahti, co-director of the Centre for Research on Journalism, Media and Democracy, believes this project differs from Canada’s since this model allows for negotiation. “As I read it, the New Zealand model is much closer to the Australian model because it is about the bargaining power and it is about the negotiating rather than paying for the links,” she said.