The Morrison Government has directed the Australian Competition and Consumer Commission (ACCC) to develop a mandatory code of conduct to address bargaining power imbalances between digital platforms and media companies.

The development of a code of conduct is part of the Government’s response to the ACCC’s Digital Platforms Inquiry final report to promote competition, enhance consumer protection and support a sustainable Australian media landscape in the digital age. 

In its final report, the ACCC identified that Facebook and Google have each become unavoidable trading partners for Australian news media businesses in reaching audiences online, resulting in an imbalance in bargaining power. 

The Government has instructed the ACCC to develop a mandatory code to address commercial arrangements between digital platforms and news media businesses. Among the elements the code will cover include the sharing of data, ranking and display of news content and the monetisation and the sharing of revenue generated from news.

The mandatory code will also establish appropriate enforcement, penalty and binding dispute resolution mechanisms.

A draft mandatory code will be released for consultation by the ACCC before the end of July, with a final code to be settled soon thereafter.

Hugh Marks Nine CEO says: "We congratulate the Government for taking swift and decisive action on this important issue. Now more than ever, it’s important the global technology companies take some responsibility for contributing to our society through financially supporting the creation of quality Australian content.  We look forward to working constructively with the Government to get the settings in place for this to operate in a simple manner."

News Corp Australia CEO Michael Miller says: "It is essential the mandatory code corrects the power imbalance between the tech platforms and local news media companies and sets rules that lead to the platforms finally paying for the news content they take and profit from. The platforms have had many years to act fairly and have chosen not to, and steps like the one now taken by The Australian Government are now finally necessary."

Joan Warner, Commercial Radio Australia CEO says: "We welcome the Government's move to redress the power imbalance between digital platforms and Australian media.  We will continue to work constructively with all parties."