PoliticalClaims.au

The Core Claim - Mandatory Code Requirements

The claim is broadly TRUE that the Coalition government introduced a mandatory code requiring digital platforms to pay news companies. The News Media and Digital Platforms Mandatory Bargaining Code was introduced by the Morrison Coalition government in April 2020 and passed by Parliament on 25 February 2021, coming into effect on 2 March 2021 [1]. The code requires digital platforms that operate in Australia to negotiate with news publishers on the value of news content displayed on their platforms, with binding arbitration available if negotiations fail [2].

However, the claim mischaracterizes key aspects of the legislation.

Payment Amounts and Scope

The claim that platforms were "forced" to pay "hundreds of millions of dollars" requires context. The code does not mandate specific payment amounts - instead, it establishes a bargaining framework where platforms and publishers negotiate the value of news content [2]. Following the implementation, over 30 commercial agreements have been reached between Google, Meta, and Australian news publishers, with these agreements valued at approximately $200 million in aggregate over the first year of operation [3]. Google specifically reported sending more than 3 billion clicks and visits to Australian news publishers in 2018 alone, valuing this traffic at approximately $218 million worth of referral value annually [4].

The framing of "forced hundreds of millions" is technically correct regarding the aggregate commercial outcomes, but misleading about the mechanism - these are negotiated agreements, not mandated fixed payments.

The ABC and Independent News Exemption Claim

This claim requires careful examination. The code does NOT explicitly exempt the ABC or independent news organizations. Rather:

• The ABC voluntarily negotiated deals under the code framework [5]
• The ABC reported that platform payments financed 57 journalist appointments, including reporters in 19 regional locations, 10 of which previously had no reporter presence [5]
• Independent and smaller news publishers benefit from collective bargaining provisions allowing groups with revenues below AU$10 million to negotiate collectively - arrangements involved 84 and 24 smaller companies respectively [6]
• One agreement specifically benefited rural publishers with populations under 10,000 that had lost other media coverage [6]

The claim of ABC "exemption" is FALSE. The ABC was not exempted; it actively participated and benefited from agreements.

The Yellow Pages Analogy

The claim uses a Yellow Pages analogy, comparing the mandatory code to demanding Yellow Pages pay plumbers for customer referrals. This analogy fundamentally misrepresents the code's purpose and the underlying economics. The ACCC Digital Platforms Inquiry found that [7]:

• Digital platforms benefit from news content through increased user engagement and advertising revenue
• News publishers lack bargaining power against platforms that control distribution
• The code addresses a legitimate "bargaining power imbalance" between asymmetric parties

Unlike Yellow Pages (which primarily indexes business information), platforms like Google and Facebook prominently feature news content, display article extracts and headlines, and directly benefit from news-driven engagement [8]. The code requires negotiation, not unilateral payment mandates.

Google's 3 Billion Clicks Claim

This claim is PARTIALLY ACCURATE but contextually important. Google reported in 2020 that it sent "more than 3 billion clicks and visits to Australian news publishers in 2018" [4]. However:

• This figure represents 2018 traffic (pre-code)
• Google valued this as $218 million in equivalent advertising/commercial value
• The figure supports the OPPOSITE of the claim's argument - it demonstrates massive value Google derives from news publishers, making the bargaining code more justified, not less

The News Percentage Claim (1% vs 10%)

The claim states "The laws are written based on the incorrect assumption that news makes up 10% of Google searches when it's only 1%."

This claim is NOT WELL SUPPORTED BY EVIDENCE. Available research shows:

• News and current events account for approximately 18% of searches among Australians [9]
• News sites receive 5-25% of their traffic from Google News, with some premium sites exceeding 40% [10]
• News content generates 99% of clicks on Google Discover despite being less than 50% of available URLs [11]

The claim does not cite any government policy document claiming news represents 10% of searches. Our review of the ACCC draft code documentation and the Treasury bills does not reveal this specific 10% figure. The claim appears to be based on unsubstantiated assertion.

Tim Berners-Lee and Web Fundamentals Concern

This claim is TRUE in substance. Tim Berners-Lee, the inventor of the World Wide Web, did raise concerns about the code. His specific concerns were [12]:

• The code risks breaching fundamental web principles by requiring payment for linking
• If deployed globally, this could "make the web unworkable around the world"
• Charging for linking could set a dangerous precedent

However, Berners-Lee also proposed a solution: if the provision specifying payment for "linking" alone were removed, while retaining payments for displaying extracts or previews, the web principles concern would be addressed [12]. The Australian code as implemented allows free linking but requires negotiation/payment when platforms display extracts or previews - partially addressing his concern.