Meta and Google have slammed the Albanese Government’s updated News Bargaining Incentive designed to force Google, TikTok and Meta to strike new deals with Aussie publishers.
The proposed legislation aims to close a loophole in rules that allows digital platforms to avoid their obligations by removing news from their service.
The platforms have blasted the proposed incentive, likening it to a digital services tax.
A spokesperson for Google said: “For 20 years, Google has partnered with newsrooms through our products and programs. We remain the only technology company in Australia with commercial agreements supporting more than 90 news businesses and 226 outlets across national, regional, and independent titles.
“While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax. It ignores the fact that Google already has commercial agreements with the news industry, misunderstands how the ad market changed and mandates payments from some companies while arbitrarily excluding platforms like Microsoft, Snapchat and OpenAI – despite the major shift in how people consume news.”
Meta questioned whether such an approach was sustainable and that the incentive amounts to a “government-mandated transfer of wealth”.
“This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax,” a spokesperson said.
Under the Incentive, digital platforms operating significant social media or search services are encouraged to sign commercial deals with news publishers.
If the platforms do not strike deals, they will be taxed at up to 2.25 per cent of Australian revenue.
Prime Minister Anthony Albanese has described this as a “carrot and stick” model to sustain public-interest journalism.
“Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them,” the Prime Minister said.
“Local news matters to local communities and these stories can’t be told without Australian journalists.
“My Government will always back Australian journalists and Australian news.”
The Albanese government maintains that tech platforms such as Google, Meta and TikTok, continue to benefit commercially from journalism without adequately contributing to the cost of producing it.
Minister for Communications and Minister for Sport, Anika Wells, said: “There has never been a more important time to ensure journalists are supported to keep Australians up to date with the latest and most accurate news.
“This is part of the Albanese Government’s work to make sure our laws keep pace with changing digital technologies and deliver outcomes that are in the interest of the Australian public.”
Assistant Treasurer and Minister for Financial Services, Daniel Mulino, added: “In an increasingly uncertain world, it is crucial Australians are able to get news seen through Australian eyes and with an Australian perspective.
“This remains the case whether it is news from overseas or from just around the corner, being delivered through traditional or innovative ways.
“Large digital platforms have an important role to play in providing access to news for all Australians and being partners in innovation, we would like to see them work with the news media on commercial deals with benefit to both parties.”
‘Democracy at stake’
The leaders of Australia’s largest media companies have called on parliament to ensure the safe passage of the government’s News Bargaining Incentive (NBI) legislation.
The leaders of the ABC, ACM, Nine, News Corp, Network 10, SBS, Southern Cross Media and The Guardian issued a joint statement in response to the proposed legislation.
The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions.
This is under threat.
If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable. It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians.
The government’s News Bargaining Incentive (NBI) draft legislation is a critical step toward securing the future of Australian news. By prioritising commercial deals this legislation protects our democratic way of life.
It has been more than two years since Meta walked away from previous deals and almost 18 months since the government announced the NBI.
While Google has been positive about doing deals, others need to come to the table, and all platforms need to step up.
We urge all parliamentarians to support safeguarding Australian journalism and the vital role it plays in our democracy, for all Australians.
