Google renews Agreements under News Media Bargaining Code with Cancellation clauses valid for one year

By Media Infotainment Team | Tuesday, 23 July 2024

Google has extended its agreements under the News Media Bargaining Code with both major and minor publishers, introducing new terms that include provisions for cancellation within one year. 

Google’s agreements are valued at approximately $130 million in total, contrasting with Meta’s earlier withdrawal from equivalent agreements, which were about $70 million.  

Among others, key publishers participating in Google’s renewed agreements include Times News Group, Solstice Media, Private Media, the Conversation, Women’s Agenda, and Independent Media.

According to media reports, Lucinda Longcroft, Google’s director of government affairs, highlights the company’s continuous backing of the Australian news sector. She mentioned agreements with more than 80 Australian news entities, predominantly regional or local outlets. Larger companies such as Seven West Media and Nine entertainment secured agreements lasting five years, whereas smaller publishers received less advantageous terms.

News Corp allegedly finalized a worldwide three-year agreement with Google valued at more than AU$150 million, with potential indications of extending its previous arrangement by one year.

Reports indicate that Google considers these agreements wise in light of uncertainty surrounding the Code’s future under the Albanese administration, which is contemplating designating Meta and potentially  requiring it to engage in comparable negotiations. 

Media reports also indicate that assistant treasurer Stephen Jones is evaluating whether there exists an imbalance in bargaining power between Meta and Publishers, drawing on evidence from the ACCC. He is also examining the significance of Meta’s contributions to the Australian news industry.

There is increasing concern about Meta’s actions following its threat to block news distribution, which could have substantial financial impacts on publishers such as The Daily Aus and Broadsheet. 

Prime Minister Anthony Albanese criticized Meta’s decision in March to withdraw from agreements, and showcase its departure from Australian norms. Meanwhile, Google’s recent adjustment in search ranking algorithms, favoring platforms like Reddit and Quora over news sources, has had an important impact on traffic to online publishers.

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