The New Zealand Initiative is urging the government to abandon the Fair Digital News Bargaining Bill, warning that the proposed legislation could harm the very news organisations it aims to help.

In this research note, the Initiative argues that the Bill, which would require large digital platforms to negotiate payment for news content with New Zealand media companies, is based on flawed premises and risks significant unintended consequences.

The research highlights several key concerns:

• The Bill could reduce news availability if platforms respond by limiting or removing news content entirely, as seen in Canada.
• It may entrench existing players and stifle innovation in the media market.
• The legislation undermines the open nature of the web and sets a dangerous precedent for regulatory overreach.

The Initiative recommends that instead of pursuing this legislation, policymakers should focus on targeted support for public interest journalism and creating an environment that encourages innovation and competition in the digital age.