New Delhi: The Australian government has announced plans to impose financial charges on large technology companies if they fail to compensate local media for news content. 

This new policy, dubbed the “News Bargaining Incentive,” was unveiled by Assistant Treasurer and Minister for Financial Services Stephen Jones on Thursday.

The initiative targets tech giants like Meta Platforms, Google, and ByteDance (owner of TikTok), which generate significant revenue in Australia, exceeding 250 million AUD annually. Under the new rules, these platforms will face substantial charges if they do not enter into or renew commercial agreements with Australian news publishers. 

Jones emphasised during a press conference that “The News Bargaining Initiative will create a financial incentive for agreement-making between digital platforms and news media businesses in Australia,” aiming not to raise revenue for the government but to ensure tech companies contribute to the sustainability of journalism in the country.

This move follows the 2021 News Media Bargaining Code, which initially forced tech companies to negotiate with news organisations. However, with Meta indicating it would not renew its deals with Australian publishers beyond 2024, the government has introduced this incentive to maintain the flow of funds to the media sector. 

Meta has voiced concerns about the proposal, arguing that “it fails to account for the realities of how our platforms work,” with a Meta spokesperson stating most users do not come to their platforms for news content. Critics from the tech industry have also questioned the fairness of charging one industry to subsidise another, highlighting that news publishers voluntarily post content on these platforms, gaining visibility and traffic in return.

Nevertheless, Communications Minister Michelle Rowland and Jones have made it clear that the initiative is about supporting quality journalism, which they argue is crucial for a healthy democracy. They suggest that tech companies might prefer negotiating deals rather than facing the alternative of paying these charges, which could run into millions of dollars.

The new rules are set to come into effect from January 1, 2025, with further details to be fleshed out in a public consultation paper early next year. This policy marks another chapter in Australia’s ongoing efforts to regulate tech giants, following last month’s ban on social media access for children under 16