The Australian government acknowledged limitations in its controversial media bargaining code and is working to introduce a new incentive to force digital platforms to pay news publishers for content.

Australia’s move follows Facebook parent Meta Platforms threatening to stop paying local news outlets for content after deals expired earlier this year.

Minister for Communications Michelle Rowland stated the news media bargaining code passed in 2021 allows platforms to avoid their obligations by removing articles. “This is not in the best interest of Australians. A significant proportion of Australians use digital platforms to access news and we want this to continue.”

She said the objective is to encourage digital platforms to enter into, or renew, commercial deals with news publishers, not to raise revenue.

Minister for Financial Services Stephen Jones added the new approach strengthens the existing code by addressing loopholes which could see platforms “circumvent their responsibility to pay”.

The politicians noted companies choosing not to enter or renew commercial agreements with publishers would pay a fee, while digital platforms with agreements would be able to offset their liability.

Australia’s incentive will apply to large digital platforms operating significant social media or search services, regardless of whether or not they have news feeds.

The government plans to open a public consultation in early 2025 on the final design of the scheme.