The Federal Government will undertake a review of the News Media and Digital Platforms Mandatory Bargaining Code, which will begin on March 2.
The Treasury released terms of reference for the review, which will be in consultation with with the Department of Infrastructure, Transport, Regional Development and Communications, the Australian Competition and Consumer Commission, and the Australian Communications and Media Authority.
The review will report to the Treasurer and Minister for Communications, Urban Infrastructure, Cities and the Arts in September 2022 and a consultation paper is set to be released in the coming weeks.
Industry body Commercial Radio Australia (CRA) said in a statement the Federal Government review into the operation of the Code would be an opportunity to examine whether stronger actions are required to urge Google and Facebook to strike content deals with radio broadcasters.
Joan Warner, chief executive officer, said the digital giants had yet to reach commercial agreements with the majority of commercial radio stations despite the ACCC granting CRA authorisation last October to bargain for payment of radio content featured on such platforms.
“We are continuing to seek commercial outcomes but if Google and Facebook are unwilling to negotiate fair compensation, then stronger actions and designation may be required,” she said.
“We remain concerned that the current status quo will leave smaller media organisations such as radio stations at a competitive disadvantage.
She continued: “Commercial radio operates newsrooms across the country and generates a substantial amount of local news and information consumed by Australians on digital platforms.”
“The Morrison Government said today that Treasury would conduct a review into the Code as required within 12 months of it coming into effect. When granting CRA authorisation, the ACCC said that “commercial radio stations play an important role in providing regional and local reporting,” she added.
CRA represents 261 member radio stations across metropolitan and regional Australia, including smaller operators across regional areas.