Google renews News Media Bargaining Code agreements with cancellation clauses after a year

New Delhi: Google has renewed its News Media Bargaining Code agreements with both large and small publishers, with some new deals including clauses allowing cancellation after just one year. 

The total value of Google's deals is estimated at $130 million, whereas Meta, which withdrew from similar agreements earlier, was previously estimated at around $70 million. 

Key publishers involved in Google's renewed agreements include Times News Group, Solstice Media, Private Media, The Conversation, Women’s Agenda, and Independent Media, among others.

According to media reports, Google's director of government affairs, Lucinda Longcroft, highlighted the company's ongoing support for the Australian news industry, noting agreements with over 80 Australian news businesses, primarily regional or local outlets. While major players like Seven West Media and Nine Entertainment secured five-year deals, smaller publishers faced less favourable terms.

News Corp reportedly secured a global three-year deal with Google worth over AU$150 million, with indications of a one-year extension to its previous arrangement. 

Reports suggest Google views such agreements as prudent amidst uncertainty over the Code's future under the Albanese government, which is considering designating Meta and potentially compelling it to negotiate similar deals.

Media reports also reveal that assistant treasurer Stephen Jones is assessing whether there's a bargaining power imbalance between Meta and publishers, based on evidence from the ACCC, and whether Meta's contributions to the Australian news industry are significant. 

There's growing concern about Meta's actions following its threat to ban news distribution, impacting publishers like The Daily Aus and Broadsheet, which anticipate significant revenue losses.

Prime Minister Anthony Albanese criticised Meta's decision in March when it withdrew from deals, emphasising its inconsistency with Australian norms. Meanwhile, Google's recent adjustment in search ranking algorithms to prioritise platforms like Reddit and Quora over news sources has significantly affected traffic to online publishers.