New legislation has been tabled in New Zealand, compelling tech giants like Meta (formerly Facebook) and Google to negotiate with news publishers to use their content on the platforms. The bill, introduced by Broadcasting Minister Willie Jackson, aims to address the declining revenues of media companies by requiring digital platforms to pay for news content displayed on their sites.

Unlike Canada's law, which led to news being blocked on Meta platforms, the New Zealand bill emphasizes a bargaining process between tech companies and news media, overseen by the Broadcasting Standards Authority. However, experts believe that Meta might still choose to restrict news access on its apps in New Zealand. Conversely, Google has established agreements with more New Zealand news outlets and is likely to be less impacted by the legislation.

While the bill aims to secure financial support for the media sector, experts suggest that the funds from tech companies might not be sufficient to fully revive the industry. In addition, concerns remain about the potential for Meta to take a hard stance in response to the bill. As Meta and Google evaluate the implications of the legislation, the tech giants express their concerns over the proposed approach, citing the complexities of their platforms' operations and the value they provide to news publishers.

Why does it matter?

The legislation underscores the shift in news consumption to online platforms, impacting traditional media revenue models. The decline of traditional media outlets threatens the livelihoods of journalists and endangers the quality of information available to the public. The contrasting responses in Australia, Canada, and potentially New Zealand highlight the complex power dynamics as their stance may influence other jurisdictions' approach to regulating the relationship between big tech and journalism.