Photo Source: Miguel Á. Padriñán
New Zealand’s Fair Digital News Bargaining Bill has hit an unexpected roadblock. Originally scheduled for its second reading on 13 November 2024, the bill now faces delays.
According to Minister Paul Goldsmith’s office, which initially responded on Tuesday afternoon, saying, “We’ll let you know when there’s something definitive. No date to advise at this stage. The Government will make announcements when it’s ready.”
Subsequently, the office released a revised statement, explaining, “The bill wasn’t ready this week. When the Government has something to announce, it will.”
Supporting Media Sustainability
The New Zealand government has introduced the Fair Digital News Bargaining Bill in an effort to support struggling media outlets. The bill mandates that tech companies negotiate payments with news publishers, enforcing penalties for non-compliance, and aims to correct the financial power imbalance between international tech firms and local journalism.
Public and Industry Reactions
“The results reveal that 65% of respondents would be either very annoyed or somewhat annoyed if they were unable to access New Zealand news stories via search engines or social media platforms.
“Notably, 75% of individuals in the under-40 age group expressed they’d be somewhat or very annoyed by this, underscoring how younger demographics rely on digital platforms for staying informed on current affairs.”
While the Fair Digital News Bargaining Bill has garnered backing from media groups advocating for the future of journalism, it has raised significant public and industry concerns.
Green MP Ricardo Menéndez March remarked, “The reality is large multinational corporations like Google and Facebook benefit from local news, so they should pay their fair share.”
Dr Eric Crampton, Chief Economist at The New Zealand Initiative, criticised the bill, saying, “This bill represents a misguided approach to supporting journalism.” He went on to highlight that the legislation “ignores the potential for voluntary agreements and new business models to emerge as the market adapts to technological change.”
Tech Giants Push Back
Tech companies, including Google, have strongly opposed New Zealand’s Fair Digital News Bargaining Bill.
Caroline Rainsford, Google’s New Zealand country director, highlighted the company’s concerns over the New Zealand government’s proposed “link tax” regime in a blog post. She stated that the proposal is “fundamentally flawed and would generate unintended consequences and unsustainable models.”
Rainsford further warned that if the bill were passed, Google would be compelled to “make significant changes” to its products and news investments. This could include halting links to news content on Google Search, Google News, or Discover surfaces in New Zealand, as well as discontinuing its existing commercial agreements with local news publishers.
Risks to Democratic Values
The bill’s critics argue that it may conflict with New Zealand’s Bill of Rights Act, highlighting the risk to free expression and the public’s right to access information. They warn that restricting access to news could weaken democracy, limiting citizens’ ability to engage with a range of viewpoints and scrutinise those in power.
“At some point, the Government is going to have to address Big Tech in a way that not only keeps the marketplace competitive, but also democratic.”