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Commerce Commission-NewZealand Incorporated’s News Publishers Association seeks approval and interim approval to engage in collective bargaining with Facebook and Google

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The Commerce Commission has received an application from the News Publishers’ Association of New Zealand Incorporated (NPA) for approval and provisional approval on its behalf. Current and future members will jointly negotiate news terms with Facebook and Google respectively. Content is displayed on each platform. NPA is seeking 10 years of approval.

NPA is an industry association whose membership consists of New Zealand regional and national news media companies. NPA advocates on behalf of the New Zealand news media industry. NPA currently represents about 10 news media companies.

Facebook offers online social media and social networking services. Google offers internet-related search services and products. Facebook and Google will display news and journalism content from New Zealand news media companies on their respective platforms.

The NPA believes that intensifying competition as a result of New Zealand news media companies’ joint negotiations with Facebook and Google is more important than the public interest that may occur. According to the NPA, these benefits include reducing the cost of negotiating with digital platforms, dealing with significant bargaining imbalances with Facebook and Google, and a variety of efficiency benefits. The NPA has also helped support the sustainability of New Zealand news media companies with the results achieved through these collective negotiations, and thus towards the fight against disinformation and fraud in New Zealand news and journalism. , We believe that it will contribute to more media diversity and resources.

A public version of the NPA Approval and Provisional Approval Application is available in the Commission’s Case Register.

The Committee will seek stakeholder submissions regarding the adequacy of allowing the NPA to carry out the proposed collective negotiations while the Committee is considering an application for approval.

Submissions can be emailed to [email protected] at NPA Interim Approval. All submissions must be received by 1 December 2021 and mutual submissions will be due by the end of business on 8 December 2021.

The Committee will solicit submissions from stakeholders regarding substantive approval applications in the future.

Background

Under Section 58 or 65AA of the Commercial Code of 1986, the Commission may violate the law if the contract is found to have or may have such consequences in all circumstances. You can give approval for a contract. The benefit to the public that the act should be permitted.

The Commission’s approval guidelines describe when anti-competitive agreements that may weaken competition are approved under Article 58 of the Act and our process for determining such approval applications. ..

The Commission is tentatively based on Section 65AD of the Act during the COVID-19 epidemic with respect to applications for approval made under Section 65AA (2) or (3) or 58 (1) or (2). Approval can be given.

Interim approval has the same effect as approval, but for a limited period of time and is only available while the Commission is considering applying for approval of the relevant contract. The committee may approve all or part of the contract for which approval is required.

The Commission may give interim approval if it deems appropriate. The Committee will consider the urgency of the application, the potential benefits and disadvantages, and, among other factors, the impact on the relevant market, when considering the appropriateness of the provisional approval.

COVID-19 Response (Additional Control Measures) The Commission’s guidelines for an approach to legislative approval explain:

If the Committee grants interim approval, and our process for deciding such an interim approval application. If the Committee approves a contract that includes a cartel clause under Part 5 of the Act, and our process for deciding such an application for approval.

Sources

1/ https://Google.com/

2/ https://comcom.govt.nz/news-and-media/media-releases/2021/news-publishers-association-of-new-zealand-incorporated-seeks-authorisation-and-provisional-authorisation-to-engage-in-collective-bargaining-with-facebook-and-google

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