New Zealand’s conservative coalition government announced on Tuesday that it will proceed with a bill mandating digital technology platforms to pay media companies for news content. This initiative comes as New Zealand media companies struggle to compete with technology firms for advertising revenue, prompting the need for innovative ways to sustain news production.
The Fair Digital News Bargaining Bill, initially introduced last year by the previous Labour government, is set to be presented in Parliament with amendments designed to help local media companies generate revenue from the news they produce, according to Communications Minister Paul Goldsmith. The proposed changes aim to align the bill more closely with Australia’s digital bargaining law, which took effect in March 2021.
Australia’s law empowers the government to compel internet giants such as Meta Platforms (Facebook) and Alphabet Inc.’s Google to negotiate content supply deals with media outlets if the parties cannot reach an agreement on payments. Goldsmith indicated that the New Zealand bill would similarly empower the communications minister to designate which digital platforms would fall under the law’s jurisdiction. An independent regulator will be appointed to oversee the bill’s implementation.
Meta has expressed opposition to the bill, arguing that it disregards the operational realities of its platforms, their voluntary nature, user preferences, and the free value they provide to news outlets. “We will continue to be open and transparent with the government and publishers on our business decisions as this bill progresses,” a Meta spokesperson stated in an email. Google has not yet commented on the proposed legislation.
Following the introduction of a comparable law in Canada in 2023, Meta blocked news content from appearing on Facebook in the country. Meta has also indicated plans to cease paying Australian media companies for news, a move that the Australian government is still deliberating over whether to intervene.
Despite the support from the governing coalition, the right-wing ACT New Zealand party, a coalition partner, has declared its opposition to the bill. As a result, the bill will require backing from other parties to pass. The opposition Labour party has stated it will review the amendments but supports the bill’s intent.
“I am relieved the government is seeing sense and progressing with legislation to make the media landscape fairer for news companies operating online,” Willie Jackson, Labour’s spokesperson for media and broadcasting, said in a statement.