Australia mandates tech giants to pay publishers for news content
What's the story
The Australian government has introduced a "news bargaining incentive," forcing digital platforms to pay for Australian news.
It targets companies with Australian revenues over AU$250 million, including Meta, TikTok owner ByteDance, and Google.
These platforms will either pay a fixed charge or strike direct deals with news publishers. Consultation on the charge level will take place in 2025.
Goal
Incentive aims to support quality journalism
Assistant Treasurer Stephen Jones clarified that the charges would be "in the millions, not billions."
After it is legislated, the requirement will be backdated to January 1, 2025, and revenue from deals after this date will qualify for offsets.
The government's goal is not to raise revenue but to ensure platforms contribute to quality journalism.
A distribution mechanism will be developed if any platform opts to pay the charge instead of making deals.
Model details
New model to prevent tech firms from avoiding payment
The news media bargaining code was introduced in 2021 to tackle power imbalances between digital platforms and news publishers.
It resulted in platforms such as Meta and Google investing roughly AU$200 million in Australian media, whose business model was disrupted by the rise of digital platforms.
However, in March, Meta announced it would cease funding Australian news through publisher deals.
The new model seeks to recover revenue lost from Meta's decision and prevent other tech giants from following suit.
Responses
How the industry reacted to the news
Media union president Karen Percy called for transparency in fund allocation, emphasizing that funds should support journalism rather than corporate profits.
Jones said the government wants Australians to have access to quality news content on digital platforms.
Communications Minister Michelle Rowland stressed the importance of a diverse and sustainable news media sector for Australia's democracy.
Concerns raised
Tech giants express concerns over new incentive
Meta voiced concerns over the proposal, saying it doesn't acknowledge that most users don't come to Facebook for news content.
A Google spokesperson emphasized their continued support for public interest journalism and existing agreements with over 80 Australian news companies.
He also cautioned that the government's targeted tax could affect the viability of commercial deals.
Industry support
News Corp Australia welcomes the move
News Corp Australia's executive chair Michael Miller, welcomed the incentive as a way to rebuild the industry after massive job losses. He intends to reach out to Meta and TikTok to revive commercial relationships.
Seven West Media's Jeff Howard lauded the government's commitment, saying it ensures fair remuneration for businesses and fights misinformation.
Independent publisher Man of Many emphasized the need for fair support for independent outlets under the legislation.