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NZ Gov demands big tech to pay for local news content

Eliza Sayon Dec 6, 2022

2 min read

The New Zealand Government is proposing a law requiring tech giants like Google and Meta to pay media companies for publishing and sharing local news content, similar to Australia and Canada.

“It’s not fair that the big digital platforms like Google and Meta get to host and share local news for free. It costs to produce the news and it’s only fair they pay,” Minister of Broadcasting Willie Jackson said in a statement.

The law will act as an incentive for digital platforms to reach high-quality voluntary deals with local news outlets.

Minister Jackson confirmed that if the law were to come into effect, it would bring about NZ$30 million ($A28 million) to the local market.

With the proposal, Prime Minister Jacinda Ardern’s government wishes to address the imbalance in negotiation power so as to voluntarily come to an agreement regarding payment for news content that favours tech giants and big media companies.

“While some deals have been reached voluntarily, small regional, rural, Maori and Pacific and ethnic media outlets are likely to miss out, so this is about ensuring everyone gets a fair go,” Minister Jackson added.

The government is also considering allowing local media outlets, including small regional and community newspapers, to form collectives without needing the Commerce Commission’s approval to negotiate huge deals with big online platforms.

This way, digital platforms will have three to six months to enter into voluntary negotiations before the law is imposed.

According to Minister Jackson, the blow to media revenue is caused by the increase in advertising investments in online and social media platforms. The investments have affected the quality of local content, the capacity to produce news, and the job security of the journalists.

Hence, he underlined that those who benefit from the content should pay for it.

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New Zealand’s draft proposal is inspired by similar laws in Australia and Canada, as well as initiatives in this direction taken in the United Kingdom and the European Union.

In March last year, Australia introduced a law requiring big online platforms such as Google and Facebook to strike a deal with local outlets, a move seen as a success by the country’s government.

With AAP

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.