New territory for Internet regulation

The bill is new territory in internet regulation, equipping our news media to take on giant platforms, such as META, in order to get a bigger share of advertising revenue from the content they create. Online platforms have changed the business model for journalism and the Government has acknowledged the power imbalance.

Regulatory efforts in other parts of the world have been underway for some time, and New Zealand has waited to see if it works elsewhere before trying it out here. That could end up working in our favour, and provide opportunities for more informed debate around how the code should be structured, and whether it is likely to achieve the intended outcomes.

This decision is timely given the internet, and social media have an entrenched problem with disinformation and public mistrust. InternetNZ’s Insights survey showed that 65% of New Zealanders are concerned about disinformation and misinformation online, up four percentage points on the previous year. The same survey also showed that New Zealanders are firmly in social media’s grip, and Meta is a major player in what we see and believe online. Nearly half of our internet users spend most of their leisure time on Meta channels or other platforms. Despite growing awareness that our personal data is leveraged for advertising purposes, many users rely on social media as a primary source of news, which platforms like Google and Meta monetise extensively through the existing outdated content partnerships with New Zealand media companies.

So will the bill be able to work without controversy? Highly unlikely. In 2021, Australia's News Media Bargaining Code was passed, and pushing and shoving between the Aussie media outlets and the platforms ensued. News was blocked on Facebook briefly, while deals were ironed out. New Zealand Internet users need to be ready for that to happen here, too. Accurate information via social media is crucial during natural disasters, so news blackouts must be accounted for in the Government’s plan, and if opposition parties hold the casting votes in this bill, this needs to be taken into account. Negotiation is the key.

Canada’s ‘Online News Act’ incorporates indigenous and minority interests, and the new bill for Aotearoa should have looked to combine the best of what’s been done so far in all countries to have gone through this process, not just Australia. The Bill aims to “create support for New Zealand’s diverse news media industry, including smaller, rural, regional, and ethnic news media entities, and, specifically, Māori news media entities; and support a free and independent news media industry.” This is crucial, and Governments must make sure it is happening. It’s an Internet issue as well as a media one. A framework that addresses unique local challenges and sets a global standard is what is needed. Canada’s Act “supports the participation of independent local, Indigenous, and official language minority community news outlets”. Our’s should be looking at this too.

We are also in the unique position of being able to incorporate the growing concerns around AI journalism into the bill. Proponents of the Fair Digital News Bargaining Bill argue that by incentivising platforms to support quality journalism, the legislation could mitigate the spread of misinformation, bolster the availability of accurate information in mainstream online spaces, and go some way to restoring trust in democracy. The unchecked dissemination of false narratives poses substantial risks to societal trust and cohesion, disproportionately affecting marginalised communities, including Māori. 

As we prepare to legislate on fair digital news bargaining, the broader goal of making a healthy information ecosystem, and internet, is important. The Government needs to develop a vision that goes beyond the media to empower citizens and consumers. For the platforms, they should align diverse New Zealand values, while preserving local control over media and the way information is dispersed. While the Government is on the right track, it is a first step, and this one online bill will never be sufficient to address the wider challenges of the online environment. 

This piece was originally published in The Post on Monday 15 July, 2024.