The encyclopedia · Legal & Compliance · Legal decision · 2021
Australia made Google and Meta pay for news with a code that never had to fire
Australia's mandatory bargaining code threatened designation and final-offer arbitration; the credible threat alone produced 30+ voluntary deals.
Australian Competition and Consumer Commission · Google · Meta
The solution
Australia's ACCC found Google and Facebook had significant bargaining power over news businesses, which the platforms needed for content but did not pay for. In 2020 the government asked the ACCC to design a mandatory code.
The Treasury Laws Amendment passed in February 2021: the Treasurer can designate a platform, forcing it to negotiate with news businesses under a code that ends in final-offer arbitration if talks fail. Designation requires showing imbalance and insufficient contribution to news sustainability.
The threat worked before it was tested. Google and Meta reached voluntary commercial agreements with a wide range of Australian news companies, and the ACCC separately allowed regional and radio publishers to bargain collectively — all without any platform being designated.
Why it worked
- Final-offer arbitration makes both sides' positions more reasonable.
- Designation criteria force platforms to show they already contribute.
- Collective-bargaining authorizations level the field for small publishers.
- The law changed behavior without the cost of enforcement.
What can be applied
A credible regulatory backstop can change an outcome without ever being used — the point of the law is to make negotiation the rational move.
Aftermath
In December 2022 the Treasury review concluded the code had been a success: over 30 agreements had been struck that were 'highly unlikely' without it. It recommended extending the code's reach and giving the ACCC more powers to review agreements.
Sources
- News media bargaining code
- News Media and Digital Platforms Mandatory Bargaining Code - The Code's first year of operation
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