Australia’s New Law: Big Tech to Fund Local Journalism

Australia is doubling down on its efforts to protect journalism by unveiling the News Bargaining Incentive, a landmark regulation requiring tech giants to compensate local publishers for hosting news content. This follows the pioneering News Media Bargaining Code of 2021, which made Australia the first country to legally mandate such payments. The new law, effective January 2025, aims to create a sustainable financial ecosystem for news outlets while countering the disruptive dominance of digital platforms.

A Decisive Step for Media Equity

The 2021 legislation compelled companies like Meta and Google to invest millions in Australia’s media industry through negotiated deals. However, tensions flared earlier this year when Meta, the parent company of Facebook and Instagram, announced it would not renew its agreements with local publishers. This decision, which resulted in a $200 million annual revenue loss for Australian news outlets, prompted swift action from lawmakers to establish a more robust, future-proof framework.

Assistant Treasurer Stephen Jones emphasized the importance of the new rules, stating, “Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism.”

Details of the News Bargaining Incentive

Unlike its predecessor, the News Bargaining Incentive introduces stricter measures, ensuring that companies earning over A$250 million annually either negotiate deals with publishers or face increased taxes. Key features include:

1. Mandatory Payments: Tech companies must financially support Australian journalism, regardless of direct negotiations.
2. Increased Tax Penalties: Non-compliance will lead to significant tax hikes, creating a strong incentive to cooperate.
3. Comprehensive Scope: The law applies not just to Meta and Google but also to platforms like TikTok, ensuring broader accountability.

The policy reflects Australia’s commitment to bridging the gap between the financial benefits enjoyed by tech platforms and the challenges faced by traditional news outlets in the digital age.

The Battle Between Tech Giants and Government

Tech companies have pushed back against the new rules. Meta, which earlier defended its decision to discontinue news tabs in Australia, has raised concerns about subsidizing the media industry. A Meta spokesperson stated, “Charging one industry to subsidize another” creates an unfair precedent.

Meta has also reiterated that news content represents a small fraction of user activity, with the company asserting, “People don’t come to Facebook for news and political content.” Despite these claims, Australian lawmakers remain firm.

Communications Minister Michelle Rowland highlighted the risks of eliminating news content from platforms, warning, “Misinformation will fill any vacuum created by news no longer being on the platform.” The government views this legislation as critical to preserving the integrity of information on social media.

Related: Australia to Ban Social Media for Kids Under 16: A Bold Move in Digital Safety

Global Implications

Australia’s actions are being closely observed by countries worldwide, as they represent a broader movement to regulate tech giants and protect local media ecosystems. The original News Media Bargaining Code inspired similar laws in Canada and the European Union, and this latest development could further shape global digital policies.

By mandating payments even without direct deals, Australia’s approach challenges the existing norms of platform-publisher relations. If successful, it could set a new global standard for how nations hold tech companies accountable.

Balancing Media Sustainability and Digital Progress

The News Bargaining Incentive addresses a critical issue: the financial erosion of traditional media in the digital era. As tech platforms continue to profit from hosting content without adequately compensating its creators, governments worldwide face mounting pressure to intervene.

For Australia, the new rules aim to strike a balance between ensuring the financial sustainability of journalism and maintaining a vibrant digital economy. As the legislation’s implementation approaches, it stands as a bold experiment in reshaping the digital landscape.