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 legislation comes in response to the financial struggles faced by New Zealand’s media companies, which have been losing advertising revenue to large technology firms and seeking new ways to sustain their news programming.
The bill, known as the Fair Digital News Bargaining Bill, was initially introduced last year by the previous Labour government.
It is now being 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 amendments aim to align the bill more closely with Australia’s digital bargaining law.
Australia’s law, which came into effect in March 2021, empowers the government to compel internet giants like Facebook owner Meta Platforms and Google, owned by Alphabet Inc., to negotiate content supply deals with media outlets if the parties cannot reach an agreement on payments independently.
Meta has criticized the New Zealand bill, arguing that it ignores the realities of how its platforms operate, 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 said in an email. Google did not immediately respond to requests for comment.
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Following Canada’s introduction of a similar law in 2023, Meta blocked news content from appearing on Facebook. The company has also announced plans to stop paying Australian media companies for news, prompting the Australian government to consider intervening.
Goldsmith stated that the proposed changes would grant the communications minister the authority to decide which digital platforms fall under the law’s jurisdiction. An independent regulator will be appointed to oversee the bill’s implementation.
However, the right-wing ACT New Zealand party, a partner in the governing coalition, will not support the bill. This means that the bill will need the backing of other parties to pass. The opposition Labour Party has expressed tentative support for the bill, pending review of the amendments.
“I am relieved the government is seeing sense and progressing with legislation to make the media landscape fairer for news companies operating online,” said Willie Jackson, Labour’s spokesperson for media and broadcasting, in a statement.
As the bill moves forward, it represents a significant step in addressing the financial challenges faced by traditional media in the digital age, aiming to create a more equitable environment for news companies competing with tech giants.