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The Australian government has announced a new law forcing tech giants like Meta, Google, and TikTok to pay local news publishers. Dubbed the “News Bargaining Incentive,” this legislation aims to secure funding for Australian journalism while addressing loopholes in earlier regulations.
The strategy to push Big Tech
Unveiled on December 12, the News Bargaining Incentive places a tax on digital platforms that earn more than AUD 250 million annually unless they enter into commercial agreements with news publishers. Assistant Treasurer Stephen Jones explained, “Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism.”
The tax is more than just a threat. Penalties for non-compliant companies exceed the cost of forming deals with media companies. Jones called it a “charge and offset mechanism” that ensures platforms pay the tax or directly support journalism.
The initiative builds on the 2021 News Media Bargaining Code, which required platforms to negotiate deals with publishers but left room for them to avoid obligations by simply removing news content. Meta famously threatened to do just that. The company cut off access to Australian news in a move reminiscent of its stance in Canada.
However, under the new law, platforms won’t be able to evade responsibility by not hosting news. Communications Minister Michelle Rowland said they are committed to closing these gaps. “Large digital platforms have an important role to play in providing access to news for all Australians and contributing to the sustainability of public interest journalism, ” he stated.
Reactions from the media and beyond
Media unions like the Media, Entertainment and Arts Alliance (MEAA) have cautiously welcomed the move. They praised the government’s efforts to hold platforms accountable but stressed the need for transparency in how funds are distributed.
“Making tech giants pay to profit from content produced by Australian news outlets and their journalists should go some way to helping to rebuild a significantly diminished industry,” said Karen Percy, MEAA Media Federal President.
Meanwhile, Meta and Google have expressed concerns. Meta argued that the law “charges one industry to subsidize another” and reiterated that news content is not a major driver of traffic on its platforms. Regardless of these objections, the Australian government’s position remains firm.
Australia’s approach is being closely watched by other countries grappling with the influence of Big Tech. Recently, the government has also enacted a law prohibiting children under 16 from using social media platforms to protect young users from potential harm.
By introducing a model that enforces accountability while providing an “escape hatch” through tax offsets, the News Bargaining Incentive offers a unique framework. Whether it will achieve its goal of sustaining quality journalism or face fierce resistance from tech giants remains to be seen. For now, Australia’s bold moves set the stage for a global conversation about the role of technology in supporting democracy and public interest journalism.
