I’m highly doubtful about this - it seems to be an excuse to disestablish the BSA, rather than a genuine basis for the decision.
I think this will help drive more partisan and sensationalist media, like one gets in the US. NZ has been relatively resistant to populism and partisanism in the past, partially because we have a watchdog to make the media all play nice.
Based on their arguments, they should really be expanding the BSA’s remit to officially cover internet-based NZ media.
Also, they’ve done a press release and talked on the radio about it to try and stir up headlines, but it’s highly unlikely to get through parliament before the upcoming election. Based on the current polling, the makeup of parliament is likely to dramatically alter by the end of the year: https://en.wikipedia.org/wiki/Opinion_polling_for_the_2026_N...