The Australian government has announced new regulations requiring digital platforms like Meta, TikTok, and Google to pay for local news content. Under the "news bargaining incentive" introduced by the Albanese government, digital platforms will either make direct payments to news publishers or pay a fee. Platforms making direct payments will be exempt from the fee.
This initiative aims to address companies trying to bypass the news media bargaining code, which was implemented in 2021 to force digital platforms to negotiate with local news publishers.
For example, Meta announced it would stop paying for news content in Australia in March 2024.
HOW WILL THE NEW SYSTEM WORK?
The regulation will apply to digital platforms with annual revenue over 250 million Australian dollars. Major companies like Meta, Google, and TikTok will either pay a government-determined fee or negotiate direct deals with news publishers to be exempt from the fee.
The government's goal is not to generate revenue from these platforms, but to encourage them to make direct payments to publishers.
The fee will be set at a level where platforms will find it more advantageous to negotiate with publishers rather than pay the government.
Once the law is in effect, the payment obligation will be retroactively applied from January 1, 2025. Deals made after this date can be used to gain exemptions from the established fees.
ARE SMALL PUBLISHERS AT RISK?
The new model carries the risk that digital platforms might strike deals with larger publishers, potentially sidelining smaller news outlets. To prevent this, the government will consult on developing an additional distribution mechanism in 2025.
Australia's Communications Minister Michelle Rowland emphasized that the regulation aims to support a diverse and sustainable news media sector, vital to Australian democracy.
Officials stressed that digital platforms benefit significantly from the Australian economy and have social and economic responsibilities to sustain quality journalism.
The news media bargaining code, which came into effect in 2021, ensured digital platforms paid news publishers, channeling around 200 million Australian dollars into the media sector.
However, recent concerns have risen over the sustainability of this process, particularly with Meta's decision to "de-prioritize" news content.
In October, the Parliamentary Social Media Committee published a report suggesting a "digital platform tax" to fund public-interest journalism. The new regulation is seen as a step to prevent platforms like Meta from avoiding this responsibility.
