The Australian government has introduced a new set of regulations compelling tech and social media companies to compensate news outlets.
Under the proposed rules, social media platforms will either need to negotiate payment agreements with news publishers or face a mandatory "charge" based on their revenue. This initiative, called the News Bargaining Incentive, builds on the industry code established in 2021, which aimed to encourage major tech firms to financially support Australian media outlets.
Initially, companies like Meta and Google struck deals with major Australian news organizations, including the Australian Broadcasting Corporation, News Corp, and Nine Entertainment. However, earlier this year, Meta opted not to renew its agreements and warned it might remove Australian news content from its platforms.
Meta argued that the current agreements under the Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Act 2021 cost the company $70 million (US$44.9 million) across all its platforms. The new News Bargaining Incentive is designed to ensure Meta contributes its fair share. Platforms that refuse to enter or renew agreements will face higher costs, with funds being directed toward public-interest journalism.
"The incentive includes a charge and an offset mechanism, allowing platforms with agreements to offset their liability, while those without will pay the charge," the government explained.
This policy targets large digital platforms providing significant social media or search services, regardless of whether they host news. Companies with over $250 million in Australian-based revenue, such as TikTok, will be affected, though platforms like X (formerly Twitter) are expected to fall below the threshold.
Assistant Treasurer Stephen Jones emphasized the importance of these measures, stating, "Digital platforms gain significant financial benefits from Australia and have a responsibility to support access to quality journalism." The updated policy addresses loopholes in the 2021 code to prevent platforms from avoiding their obligations.
Major tech companies like Apple, Amazon, and Microsoft are unlikely to be affected, as they do not qualify as social media platforms under the new rules.
These changes follow recent legislation requiring social media platforms to restrict access for users under 16 within 12 months. Communications Minister Michelle Rowland underscored the government’s commitment to sustaining the news industry, noting that large digital platforms play a critical role in ensuring Australians have access to reliable journalism.
The government clarified that it does not intend to profit from any revenue generated by the new measures.
Broader Implications
The Australian government is also mindful of potential reactions from the United States, particularly as Donald Trump’s presidency looms. Assistant Treasurer Jones indicated ongoing discussions with U.S. officials, who were briefed on the announcement.
Trump has previously spoken about regulatory pressures on Big Tech, with companies like Apple approaching him to address global regulations.
Industry Pushback
The Digital Industry Group (DIGI), representing tech companies in Australia, criticized the government for insufficient consultation. DIGI argued that this approach unfairly targets one industry to subsidize another, claiming no similar precedent exists in other sectors.
“There are unresolved questions about whether the funds will genuinely support public-interest journalism,” DIGI stated.
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