The legislation mandating an Australian News Media Bargaining Code entered the House of Representatives this week, but its passage will have to wait until next year.
The bargaining code[1], according to the government, is necessary to address the fundamental bargaining power imbalances between Australian news media businesses and major digital platforms.
It was originally intended for the code to be voluntary, but according to Treasurer Josh Frydenberg, it was clear the code needed to be mandatory, as "deals could not be struck that would see the digital platforms pay for original, journalistic content".
"These digital platforms were unavoidable trading partners for traditional news media businesses," Frydenberg said during a press conference announcing the code was entering Parliament.
The Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Bill 2020 introduces a framework that aims to allow and enable commercial deals to be struck between traditional news media outlets -- now including the ABC and SBS -- with Google and Facebook.
"We want deals to be struck between the parties outside of the code … but if [they're] unable to reach a commercial agreement, or unwilling to reach a commercial agreement, then a final offer arbitration model will take effect," he said.
"We have reached a fair and a balanced outcome."
See also: Not happy Jan: Google likens media bargaining code to using the Yellow Pages[2]
The revised code now contains a "two-way value exchange", which Frydenberg said "money will only flow one way" and that is into the hands of news outlets. He also said it would also set a series of minimum standards that the digital platforms have to adhere to.
"This is a huge reform, this is a world first, and the