Rupert Murdoch’s Australian arm tells government inquiry there is ‘a lack of a level playing field’ for online news

This article is more than 2 years old

This article is more than 2 years old

News Corp Australia has called on the government to review the charters of the ABC and SBS and to restrict the public broadcasters from unfairly competing with its newspapers, websites and Sky News.

Rupert Murdoch’s Australian arm has told a government inquiry the internet has transformed the ABC and SBS into “news publishers” who have the advantage of being taxpayer-funded, while denying commercial competitors revenue.

“As a result there is now a lack of a level playing field for the distribution of news content online,” News Corp and Sky News said in a submission to the inquiry into the competitive neutrality of the national broadcasters.

The government’s inquiry is examining the expansion of the ABC’s online news service, ABC iview, SBS On Demand and other services, after commercial players including Foxtel, News Corp and Fairfax Media complained about taxpayer-funded media crowding them out.

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Competitive neutrality principles require that public entities should not enjoy a competitive advantage.

“Public broadcasters – who are now news publishers – are advantaged on this field due to their taxpayer-funding models and the out-of-date charters that require holistic review in the digital context.”



The publisher of the Australian and Daily Telegraph wants the ABC to be barred from promoting its news stories online using Google ads. During the budget for example, the ABC will buy search terms to promote its budget coverage on Google.

The ABC revealed at budget estimates that it spent $440,000 on Google ads and $1.4m on Facebook as part of its $4m marketing budget in order to tell the audience about its news content.



“We query the need to amplify news published by public broadcasters given that these news stories would be discoverable in search results in the usual course of searching,” the submission said.



News Corp had also asked the government to ban the ABC from selling its content to third parties like outdoor advertising companies and Qantas lounges because the commercial supply of news content was an important revenue stream for Sky News.

“In April 2017 the ABC entered a three -year agreement with oOh!Media Limited to syndicate ABC News content across all of oOh nationwide digital advertising platforms, including large format roadside billboards, digital billboards in shopping centres and place based media, including digital screens in offices, universities, cafes, gyms, medical centres and more,” the submission said.



“Under the deal ABC News also became the exclusive news provider for Qantas lounges at five major airports.”

The communications minister, Mitch Fifield, appointed economist Robert Kerr, commercial TV lobbyist Julie Flynn and former ABC TV executive and producer Sandra Levy to examine whether the ABC and the SBS had an unfair advantage over commercial media.

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But the ABC has told the inquiry the corporation spent less than 0.2% of its budget on digital marketing, such as Google ads, to promote its content.



“Any move to curtail the ABC’s activities would serve only to punish Australian audiences who trust and value us,” the ABC managing director, Michelle Guthrie, said when releasing the submission.



“The ABC looks forward to engaging further with the panel and having an opportunity to respond to the concerns raised by other participants in the inquiry.”

News Corp has also recommended the government ensures the ABC observes its charter which states that the corporation “shall take account of the broadcasting services provided by the commercial and community sectors of the Australian broadcasting system”.

“Given the changes in the media landscape, it is important that this clause, and any others, are appropriate in the digital environment and apply to the range of services – including news services – provided by the commercial sector.

The SBS charter should be revised to include a similar provision, the submission said.

