CPA - an industry body that represents the interests of independent regional and local newspapers throughout Australia - currently represents 81 members and 160 regional newspapers, which provide local news to regional communities in print and online.
One of the 23 recommendations made by the ACCC’s 2019 Digital Platforms Inquiry final report was that a code be developed to address the imbalance in bargaining power between leading digital platforms and Australian news businesses - and in April 2020, the Government directed the ACCC to develop a mandatory code - with legislation enacting the News Media and Digital Platforms Mandatory Bargaining Code passed by Parliament on 25 February this year.
The Australian Competition and Cosumer Commission says that authorisation will enable CPA members to collectively negotiate with each of Facebook and Google, engage in discussions with each other and exchange information about those negotiations.
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The Commission stresses that without authorisation, these collective bargaining arrangements would risk breaching competition laws as no platforms have yet been ‘designated’ under the news bargaining code, which would automatically allow collective bargaining for news media businesses.
“The ACCC considers that allowing CPA members to bargain collectively is likely to result in public benefits by enhancing negotiations between regional publishers and digital platforms, and thereby assisting the sustainability of regional news production,” ACCC Chair Rod Sims said.
“These public benefits align with the purpose of the news media bargaining code, which was intended to allow and encourage collective bargaining.”
“We welcome the fact that both Facebook and Google appear to be successfully reaching voluntary deals with Australian news businesses, including a number of smaller publishers, following the passage of the bargaining code. The onus now remains on Facebook and Google to continue to negotiate in good faith with news businesses of all sizes,” Sims said.
The interim authorisation means that CPA members can now commence collective negotiations while the ACCC seeks feedback on CPA’s application for final authorisation.
The ACCC’s statement of reasons for the interim authorisation and more information on how to make a submission are available on the ACCC public register at Country Press Australia (CPA).