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The Conversation is a great news site. But, for the most part, people don't read it like a newspaper. Instead, articles on specialised topics are shared with other people. One way is via Facebook.

Yesterday, almost none of that was possible worldwide for the Conversation's Australian content because Facebook opted to ban all news (even seeming news ) from Australian sources to avoid being designated for compulsory negotiations under legislation before the Australian parliament.

The government's new media bargaining code was a response to the Australian Competition and Consumer Commission's digital platforms inquiry that found it was hard for content providers, including but not limited to news organisations - to deal with platforms whose rules were always changing.

Parts of these grievances are legitimate, and relate to editorial and algorithmic issues. Others relate to the platform's stranglehold on online advertising.

But rather than tackle these issues head on, Australia's government sliced out a sliver of the sites affected - news sites - and attempted to fix things for it, saying it's concerned about competition.

Competition policy without more competition

To any economist, the point of competition policy is to encourage competition. In this case, either more digital platform options for consumers, or more news content options.

But the government's legislation seems to be uniquely designed to deliver neither.

The code allows news organisations to negotiate with large digital platforms about things such as how their algorithms work to prioritise content, and money.

And money is what it is really all about. The news organisations want more of it, large digital platforms have it. It's that simple.

The code empowers news organisations to get money from digital platforms by

• making it unlawful for digital platforms that do not pay up to provide links to Australian news, giving big news outlets quasi-monopoly bargaining power

• allowing deals to be made without the need for authorisation by a regulator concerned about the public interest

• providing a regulatory stop-gap should that not happen, whose design is tilted in interest of one of the parties

This last step requires a little explanation.

It is not unknown, especially in Australia, for competition policy to work by first allowing parties to negotiate, and then imposing a regulated settlement only if they fail.

And its normally about empowering the little guy, in the belief that's what leads to socially desirable outcomes.

Little guys locked out

But not in this case. It is only the large news organisations that would be allowed to negotiate over money.

It's quite different to the system adopted in France, whose government is able to collect money from digital platforms via a tax, which can, should the government wish, be distributed to content providers on a criteria other than naked private interest. The French system isn't clearly pro-competition either, but it at least provides a mechanism that could enable good outcomes to occur.

Read more: Banning news links just days before Australia's COVID vaccine rollout? Facebook, that's just dangerous

The Australian process fails to deliver competition in two ways.

First, it allows the treasurer, rather than a judge, to designate the platforms the process will apply to. He is unlikely to designate a platform that large media organisations have no problem working with, as that will entail work.

Second, the treasurer is unable to designate a platform that doesn't carry any Australian news. So if a digital platform wants out, it can get out.

Both of these things have begun to come to pass in the last day - even before the code has been legislated.

Facebook gains a bargaining tool

Google has done deals with some large news outlets and thereby signalled it will do deals with others to ensure it is not designated. It means Google won't have to deal with all of the other smaller voices that also have a problem with it.

Facebook has opted out of the news content business altogether, as the law allows it to. It decided Australian news wasn't worth it, at least for now. Australians can still share news from around the world, which in some ways is more valuable to them than local news they are already aware of.

Facebook might be doing it to get a better deal when negotiations take place.

Read more: Why Google is now funnelling millions into media outlets, as Facebook pulls news for Australia

Bizarrely, before the government's proposed legislation, if Facebook had excluded content from suppliers in order to get a better deal, Australia's Competition and Consumer Commission could have prosecuted it for exclusionary conduct.

The new code gives Facebook a licence to do what it has just done, and argue that it could not have been exercising market power because it was merely using the steps identified in the code as necessary for it to avoid compulsory arbitration.

Never mind that this really means Facebook

• has been able to demonstrate to news outlets how much they need it

• is now able to get news organisations to agree to better conditions than if it had not been given this licence.

In other words, the entire process has had the (I hope) unintended consequence of enhancing the very market power that it claimed to intend to contain.

No more platforms, no more competition

Those games aside: where will this end up? It will end up with the large digital platforms doing deals with the largest news outlets. Those deals will be multi-year lump-sum payments which enable everyone to go about their business. There will be no new digital platforms, no new content providers, no more competition.

The shareholders of the large digital platforms will be a few million dollars poorer and the shareholders of large Australian news outlets a few million dollars richer.

Free Horse Racing Software Australia

There will be no improvement in any competitive outcome whatsoever. As often happens in Australia, oligarchies will consolidate, and consumers will get nothing.

Author: Joshua Gans - Professor of Strategic Management, University of Toronto

Kelly Schweida Racing

Welcome to Kelly Schweida Racing where our aim is to strive for excellence and provide the best opportunities to win.

We offer owners the complete experience of horse racing. Kelly has a personal approach with his horses and clients and is a reputable, dedicated trainer with traditional values.

Our stables are located at Eagle Farm Racecourse, Queensland, where our training facilities are state of the art. Together with our property with open paddocks where the horses can relax, and our close proximity to the beach for therapeutic beach work, we have everything a race horse needs.

We welcome all enquiries, feel free to contact us at any time, or e-mail us direct through ourcontact us page of this website.

Kelly Schweida, Trainer - 0417 768312.

Horses Currently Available

Almanzor X Empress Cixi

Sire: Almanzor Dam: Empress Cixi

Sold.

Spirit Of Boom X Coogee Coozifa

Sire: Spirit Of Boom Dam: Coogee Coozifa

**100% SOLD**

Shares are available in this half sister to Oink that Kelly Schweida purchased recently at the Magic Millions Gold Coast Yearlings Sale. Lot 184 she is, and is seen to be the best sort of all the foals out of the mother of Oink that K...

Zoustar X Emotional Circus

Sire: Zoustar Dam: Emotional Circus

**SOLD**

Shares are available for immediate purchase in this cracking colt, he was seen by Kelly to be very athletic and is thought to have everything that you could want. From the Magic Millions Sales he had a great walk and showcased amazing look...

Spirit Of Boom X Diva Forever

Sire: Spirit Of Boom Dam: Diva Forever

Sold.

More Than Ready X Emaurismo

Sire: More Than Ready Dam: Emaurismo

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Snitzel X Perfect Fit

Sire: Snitzel Dam: Perfect Fit

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More Than Ready X Single Style

Sire: More Than Ready Dam: Single Style

Sold.

Better Than Ready X Secret Indulgence

Sire: Better Than Ready Dam: Secret Indulgence

Sold.

Written Tycoon X Stresa

Sire: Written Tycoon Dam: Stresa

Sold.

I Am Invincible X Sweet Kiss

Sire: I Am Invincible Dam: Sweet Kiss

**100% SOLD**
Kelly Schweida purchased a beautiful half brother to Gotta Kiss at the Magic Millions Yearlings Sales. This colt is by I Am Invincible and is a nice running type. This horse sells himself. He has a good x-ray and scope. So get in fast...

Heroic Valour X O’Venus

Sire: Heroic Valour Dam: O’Venus

**SOLD**
Kelly Schweida purchased lot 1021 a brown colt for $140,000 at the Magic Millions Yearlings Sale. He is a big strong colt that is an August foal by a group one first season sire. Out of an Anabaa mare this horse is QTIS registered and is f...

Shooting To Win X Puerto Vallarta

Sire: Shooting To Win Dam: Puerto Vallarta

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Sebring X Adsila

Sire: Sebring Dam: Adsila

Sold.

Sebring X Lady Antebellum

Sire: Sebring Dam: Lady Antebellum

Click on the link to view more about this horse.

**60% SOLD**

Kelly Schweida purchased this chestnut Sebring colt at the Inglis Classic Sale. He’s not very big hence the pric...

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