Question

What are news bargaining codes, and why do platforms pay publishers?

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Curated Intelligence
Definitive Source
Answer

Laws requiring large technology platforms to negotiate payment with news publishers for content that appears on their services — introduced because publishers argued platforms captured the advertising revenue that once funded journalism.

The underlying dispute. Search engines and social platforms display headlines, snippets and links to news. Publishers argued this generates value for the platform while a declining share of advertising revenue reaches the people producing the journalism. Platforms responded that they send traffic to publishers for free, and that publishers could exclude themselves at any time.

Both positions contain truth, which is why the argument was never settled on the merits and was resolved by legislation.

Australia's News Media Bargaining Code, from 2021, was the first significant example. Its mechanism was unusual: rather than setting a price, it required designated platforms to negotiate with registered publishers and provided for compulsory arbitration if negotiation failed — with a "final offer" model where an arbitrator picks one side's figure rather than splitting the difference, which pressures both sides toward reasonableness.

The confrontation. One platform briefly removed news content entirely from its service in Australia rather than comply, which removed access to public health and emergency information as well as journalism, and the law was amended before agreements were reached. The episode demonstrated the asymmetry of leverage clearly.

Elsewhere: Canada enacted comparable legislation and saw news links blocked in response; the EU approached it through a neighbouring right for press publishers in copyright law rather than a bargaining code; and several countries have negotiated arrangements without legislation.

The criticisms, from several directions:

It benefits large publishers most, since they have the negotiating position, while small and local outlets — whose decline prompted the policy — gain least.

It is not conditional on producing journalism, so payments need not fund reporting.

Paying for links is argued to undermine the principle that linking is free, which is foundational to the web.

It entrenches dependence on the platforms rather than reducing it.

The underlying problem is unresolved: advertising revenue moved, and no mechanism has replaced it at scale.

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