Australia has announced bold new regulations requiring tech giants like Meta, Google, and TikTok to pay local publishers for news content. This initiative builds on the country’s groundbreaking 2021 law and seeks to ensure fair compensation for journalism while addressing power imbalances between digital platforms and traditional media. The new framework aims to secure sustainable funding for quality news, reinforcing the vital role of journalism in society.
A New Era for Tech Giants and Journalism
Australia’s government has unveiled plans to introduce fresh regulations compelling major tech companies to pay local publishers for hosting news content. These measures build upon a landmark 2021 law that initially targeted industry giants like Meta and Google, ensuring they compensated news organizations for using their material.
Earlier this year, Meta—owner of Facebook and Instagram—declined to renew its agreements with Australian publishers, leading to tensions with lawmakers. The newly announced framework, dubbed the News Bargaining Incentive, aims to resolve this impasse by requiring platforms generating annual revenues above AUD 250 million (USD 160 million or GBP 125 million) to strike commercial deals with media outlets. Noncompliance could result in increased taxation.
Expanding Obligations for Digital Platforms
Unlike its predecessor, the new framework enforces payments even if platforms forgo direct agreements with publishers. It targets widely used platforms such as Facebook, Google, and TikTok. Assistant Treasurer Stephen Jones emphasized that digital platforms benefit immensely from Australian content and must bear the responsibility of funding high-quality journalism.
Meta, however, expressed concerns over the government’s approach, accusing it of unfairly burdening one industry to subsidize another. The company had previously announced its decision to discontinue its news tab in Australia, arguing that less than 3% of user activity on Facebook involved news consumption.
Balancing Power in Media and Technology
The 2021 News Media Bargaining Code aimed to level the playing field between tech firms and news organizations. It facilitated millions in investments for Australian digital content while addressing financial losses incurred by traditional media.
However, as these agreements expired, the government accused Meta of abandoning its duty to Australian users. Communications Minister Michelle Rowland warned that removing news could create a vacuum filled by misinformation.
Implementation Timeline
The new taxation model is set to take effect in January 2025, with legislative approval expected by February. This scheme will offset tax liabilities for tech companies funding journalism, ensuring sustainable support for Australian media without prioritizing revenue collection.
