The Claim
“Proposed the scrapping of regulation which prevents media monopolies and duopolies.”
Original Sources Provided
✅ FACTUAL VERIFICATION
TRUE - The Coalition government did propose significant changes to Australia's media ownership regulations, including the removal of the "two out of three" rule [1][2].
The "two out of three" rule was a provision of the Broadcasting Services Act 1992 that prevented any single company from controlling more than two of the three main media platforms (commercial television, commercial radio, and associated newspapers) in any single market [1]. This rule was designed to ensure media diversity and prevent excessive concentration of media ownership.
In 2014, Communications Minister Malcolm Turnbull announced the government's intention to reform media ownership laws, which included repealing the "two out of three" rule along with other "reach rules" that limited media ownership [2]. While initial attempts stalled, the reforms were eventually passed in September 2017 with bipartisan support from the Turnbull government and the Labor opposition [3].
The reforms that became law included:
- Abolition of the "two out of three" rule
- Abolition of the 75% audience reach rule (which prevented networks from broadcasting to more than 75% of the population)
- Retention of the "5/4" rule (limiting minimum number of media voices in a market) [4]
Missing Context
The claim omits several crucial contextual elements:
1. Bipartisan Support for Final Reforms: While the Coalition initiated the process, the eventual passage of the media reforms in 2017 required and received Labor's support. The ALP struck a deal with the government to pass the legislation with amendments, including increased funding for public interest journalism and enhanced local content requirements [3].
2. Digital Disruption Context: The claim doesn't mention that these laws were widely considered outdated by both major parties and industry experts due to digital disruption. The "two out of three" rule was designed in the 1980s-1990s when media platforms were distinct. By the 2010s, the internet had fundamentally changed how Australians consumed media, with Google, Facebook, and streaming services dominating content distribution - entities not subject to the same ownership restrictions [4].
3. Public Interest Protections Retained: The reforms retained the "5/4" rule (minimum 5 media voices in metro areas, 4 in regional) and added new safeguards for local content, particularly in regional areas [4].
4. Regional Media Crisis Context: The reforms were partly motivated by a genuine crisis in regional media, where many outlets were struggling financially. The government argued that consolidation would allow regional media companies to achieve economies of scale necessary to survive against global digital competitors [2].
Source Credibility Assessment
Crikey.com.au: The original source is Crikey, an Australian online news publication founded by Stephen Mayne. Crikey positions itself as independent and often critical of mainstream media, particularly News Corporation. It operates on a subscription model and has historically been left-leaning in its editorial stance [5].
Assessment: Crikey is a legitimate news outlet but is generally considered center-left to left-wing in its political orientation. The headline "Removal of two-out-of-three ain't bad for News Corp" suggests a particular framing focused on potential benefits to Rupert Murdoch's media empire. While the factual basis of the article is likely accurate, the framing is selective and critical of the government proposal [5].
Crikey has at times been described as "muckraking" or "activist journalism" - valuable for transparency but not necessarily balanced in its presentation of policy debates. The February 2014 article appears focused on the potential benefits to News Corp rather than providing comprehensive analysis of the policy rationale.
Labor Comparison
Did Labor do something similar?
Search conducted: "Labor government media ownership reform Australia"
Finding: Labor has historically supported and enacted media ownership reforms, including the original framework that included the "two out of three" rule.
The Hawke and Keating Labor governments (1983-1996) actually initiated the major media ownership liberalization that created the environment for cross-media ownership. The Broadcasting Services Act 1992, which included the "two out of three" rule as a compromise, was Labor legislation [6].
More importantly, as noted above, the 2017 repeal of the "two out of three" rule was passed with Labor's active support and cooperation. The ALP negotiated amendments but ultimately voted for the legislation [3]. This demonstrates that by 2017, both major parties had converged on the view that the "two out of three" rule was no longer serving its intended purpose in the digital age.
Labor governments have also been criticized for their own media policy decisions, including:
- The Hawke government's 1986 decision to allow Murdoch to acquire the Herald and Weekly Times (creating Australia's largest media company)
- The Keating government's media ownership framework that critics argued was too permissive
- The Rudd and Gillard governments' consideration of further media reforms
Balanced Perspective
While critics of the 2014 and 2017 reforms raised legitimate concerns about media concentration and the potential for further consolidation benefiting large players (particularly News Corp), the full story includes important counterpoints:
Legitimate Policy Rationale: The government argued that the "two out of three" rule was anachronistic in the internet age. When the rule was designed, newspapers, radio, and television were distinct platforms. By 2014, digital platforms had disrupted this model completely. Australians were getting news from Facebook, Google, Twitter, and streaming services - none of which were subject to the "two out of three" rule [4].
Regional Media Survival: The reforms were partly motivated by genuine concerns about regional media viability. Many regional newspapers and broadcasters were facing existential threats from digital competition. The government argued that allowing consolidation would enable regional media to achieve necessary scale [2].
Bipartisan Convergence: The claim implies this was a uniquely Coalition agenda, but the 2017 passage with Labor support demonstrates that both major parties had concluded the rule was outdated. The ALP secured amendments for local content and public interest journalism funding, but fundamentally agreed with the repeal [3].
Comparative Context: Media ownership liberalization in Australia has been pursued by both major parties over decades. The 1992 Act was Labor legislation; the 2017 reforms were passed with Labor support. Neither party has shown consistent willingness to strictly limit media ownership when in government.
Not Unique to Coalition: The "two out of three" rule repeal was not an isolated Coalition agenda item but part of a long-term trend of media deregulation that both parties have participated in. The rule's repeal enjoyed broad political support in 2017 because its limitations had become largely irrelevant in the face of unregulated global digital platforms.
TRUE
7.0
out of 10
The Coalition government did propose and ultimately implement the scrapping of the "two out of three" rule that prevented companies from controlling all three of newspapers, television, and radio in a single market. This claim is factually accurate. The Coalition first proposed these changes in 2014 and successfully passed them in 2017.
However, this finding should be understood with the following important context: (1) The final repeal required and received bipartisan support from Labor; (2) Both parties had converged on the view that the rule was technologically obsolete; (3) The original rule itself was Labor legislation from 1992; (4) The reforms included retention of other diversity protections; (5) The policy rationale included genuine concerns about regional media viability and the rule's irrelevance in the digital age.
Final Score
7.0
OUT OF 10
TRUE
The Coalition government did propose and ultimately implement the scrapping of the "two out of three" rule that prevented companies from controlling all three of newspapers, television, and radio in a single market. This claim is factually accurate. The Coalition first proposed these changes in 2014 and successfully passed them in 2017.
However, this finding should be understood with the following important context: (1) The final repeal required and received bipartisan support from Labor; (2) Both parties had converged on the view that the rule was technologically obsolete; (3) The original rule itself was Labor legislation from 1992; (4) The reforms included retention of other diversity protections; (5) The policy rationale included genuine concerns about regional media viability and the rule's irrelevance in the digital age.
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.