To the inquiry this significant bargaining power imbalance represented a clear market failure that needed to be addressed. While there are many market failures in our economy, and not all need to be addressed, this one mattered given the importance of journalism. The restriction of the remuneration for public interest journalism by the significant bargaining power imbalance led to an under provision that harms our society.
First, there was to be good faith negotiations between the platforms and news media businesses over the payment for content and the direction of traffic. If, after a certain period, those negotiations were not successful, then recourse to arbitration was allowed, which would be binding on the parties. A panel of arbitrators would be set up by the Australian Communications and Media Authority, which is similar your Canadian Radio-television and Telecommunications Commission.
The NMBC has been successful by any measure. I applaud Canada for seeking to follow the NMBC example and introducing Bill C-18, the Online News Act, to facilitate commercial bargaining between the dominant platforms and the news businesses.
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