The Commerce Commission (Commission) has granted authorisation to allow the News Publishers' Association of New Zealand Incorporated (NPA) to collectively negotiate with Meta and Google regarding the terms and conditions on which participating news media companies' content is displayed on digital platforms operated by Meta and Google, for a 10 year period.
The Commission may authorise an arrangement such as collective bargaining if, despite any potential detriment from the arrangement, the arrangement will nonetheless likely result in a benefit to the public.
After consulting on its draft determination, the Commission reached the view that the benefits of collective bargaining in this case are likely to outweigh any possible harms. The benefits of collective bargaining include enabling participating news media companies to pool their resources and reduce the transaction costs of negotiations. Collective negotiation may also put smaller media companies in a better position to negotiate with Google and Meta than might otherwise be the case, which may lead to more and better news content.
Chair Anna Rawlings says, "The NPA's collective bargaining arrangement is likely to allow the news media companies to pool their resources, improve their bargaining power when they are negotiating with Google and Meta, such that they obtain better contract terms, and ultimately improve the production of news content".
A copy of the Commission's determination, which includes its reasons for granting authorisation, will be available on the Commission's case register soon .
Background
NPA is an industry association whose membership consists of regional and national New Zealand news media companies. NPA advocates on behalf of the news media industry of New Zealand. NPA currently represents ten news media companies, nine of whom have indicated an intention to participate in the proposed collective bargaining. A number of non-NPA members also indicated an intention to participate in the proposed collective bargaining.
A public version of the NPA's authorisation application is available on the Commission's case register.
The Commission may grant authorisation under sections 58 or 65AA of the Commerce Act for an arrangement that may otherwise breach the Act if it is satisfied that the arrangement will be likely to result in a benefit to the public that would outweigh any lessening in competition, or such that the conduct should be permitted.
