Australia’s world-leading News Media Bargaining Code has re-emerged as a flashpoint in an increasingly tense trade relationship with the United States, as President Donald Trump prepares to unveil a sweeping new package of tariffs aimed at countries he claims are treating American interests unfairly.
The 2025 Foreign Trade Barriers report, released this week by the Office of the United States Trade Representative (USTR), outlines a broad set of concerns about Australia’s trade and regulatory landscape. While longstanding agricultural trade issues feature prominently — including Australia’s restrictions on uncooked American beef, pork, poultry, apples, and pears — the report also flags fresh friction points related to the digital economy.
For the first time, the report includes a formal grievance over the News Media Bargaining Code, citing growing concern over Australia’s direction on digital platform regulation. Specifically, it highlights the Albanese government’s December 2024 announcement of the News Bargaining Incentive, describing it as a tightening of the existing code through “a financial penalty for designated platforms that do not reach or renew commercial agreements” with news publishers.
While Canberra hit pause on the rollout earlier this year to avoid provoking the U.S., the USTR’s report makes no mention of this delay, instead including the policy as a fresh grievance.Tech Lobbying Hits the Trade Agenda
The USTR did not acknowledge Australia’s subsequent pause on implementing the incentive to avoid escalating tensions, instead noting that “the United States continues to monitor this issue.” The language signals that while the U.S. has not yet taken retaliatory action, the policy remains firmly on its radar.
The report also expresses ongoing unease about other regulatory developments affecting U.S. companies, including potential local content quotas for streaming platforms like Netflix and unresolved compensation for American investors in a cancelled NSW coal mining venture.
Silicon Valley Turns Up the Heat
Behind Washington’s concern is a strong lobbying campaign from America’s tech giants. The Computer and Communications Industry Association (CCIA), representing firms like Meta, Google, Amazon, and Apple, has urged President Trump’s administration to retaliate against what it calls “coercive and discriminatory” Australian policies.
The CCIA claims U.S. companies are unfairly targeted by the code and could face annual losses exceeding US$140 million. Their submission to the USTR framed the incentive as a de facto tax on American firms—warning it may escalate costs and prompt further disinvestment.
With Elon Musk, Mark Zuckerberg and Jeff Bezos increasingly influential within Trump’s inner circle, digital regulation has become a high-stakes trade issue. Musk, now central to Trump’s cost-cutting “DOGE” policy initiative, has joined other tech titans in pushing back against what they see as aggressive overreach by foreign governments.
Canberra holds the line
In Canberra, the Albanese government insists the News Bargaining Code and its new incentive mechanism are about preserving democracy—not punishing companies.
Communications Minister Michelle Rowland and Assistant Treasurer Stephen Jones have emphasised that the code is designed to ensure platforms contribute fairly to the media ecosystem. Under the new model, platforms that refuse to pay news publishers would face a charge—higher than the cost of a commercial deal—but one that could be offset by striking such agreements.
“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay,” said Jones. “We are determined to defend our sovereignty and the right to protect what’s critical to our democracy.”
While the government has paused the rollout of the incentive to avoid escalating tensions with the U.S., ministers have maintained that the policy remains a necessary safeguard for the future of Australian journalism.
“The government has made it very clear that this is not targeted at any specific country,” Rowland said. “This is important for ensuring that Australian publishers are properly recompensed for the work that they undertake. That principle remains true.”
Publishers Largely Back Code
Australia’s major publishers have backed the government’s stance. News Corp Australia executive chairman Michael Miller praised the new incentive as a crucial step in reviving an industry battered by job losses, saying it will strengthen “the principle of commercial negotiations between tech platforms and Australian media companies” and support journalism that underpins democracy.
Nine, Seven West Media, and Free TV also welcomed the move, arguing that sustainable local news depends on fair compensation from global platforms. Independent publishers like Man of Many, however, raised concerns that smaller outlets could be excluded from commercial deals or left behind in opaque redistribution schemes.
The MEAA Federal president Karen Percy said that the reforms would ensure that digital giants paid their fair share for Australian news, but she warned that the News Bargaining Incentive must be accompanied by greater transparency and better assurances that any revenue that is raised either through a levy on digital platforms or through deals they negotiate with media outlets is invested in journalism.
The MEAA also called for small and independent media outlets to be provided with greater access to compensation from digital platforms.
“The production of quality journalism is essential to a functioning democracy, but it doesn’t come cheap and nor should it be free,” Percy said.
“Multinational tech giants, including Meta, have made billions of dollars monetising the work produced by professional journalists and it is only right and fair that they should pay for it.
“MEAA has been advocating long and hard for sanctions for companies that shirk their responsibilities, and this is a step in the right direction for accountability.
“The News Bargaining Incentive should provide a strong incentive through tax offsets for digital platforms to negotiate with media outlets, but if they refuse to do so they will be forced to pay a new levy regardless of whether they shut off news or not.”
Tech Platforms Push Back
On Australian shores, tech companies remain sceptical. Meta has dismissed the code as a flawed framework that unfairly charges one industry to subsidise another, arguing most users do not come to its platforms for news. Google warned that the charge could threaten existing deals it has already renewed with dozens of Australian publishers.
“We agree with the government that the current law is flawed and continue to have concerns about charging one industry to subsidise another. The proposal fails to account for the realities of how our platforms work, specifically that most people don’t come to our platforms for news content and that news publishers voluntarily choose to post content on our platforms because they receive value from doing so,” a spokesperson for Meta said.
A Google spokesperson raised concerns over the risks a tax raises for the ongoing viability of commercial deals with news publishers in Australia.
“Google has continually demonstrated strong support for public interest journalism as the only technology company with an extensive number of significant commercial agreements with Australian publishers”.
“Since 2021, we’ve had agreements with over 80 Australian news companies representing 218 outlets – we’ve publicly committed to renewing those deals as they expire and the earliest have already been renewed.
“As many have noted, Australians are increasingly turning to a range of platforms, such as Microsoft, Snapchat and Apple, for news content and this shift in consumption should be reflected in any proposed measures”.
TikTok, which has never paid for news under the code, said it would participate in consultations but reiterated that it is primarily an entertainment platform.
What’s at Stake?
As Trump prepares to announce a fresh wave of tariffs—potentially targeting countries with both tariff and non-tariff trade barriers—Australia is bracing for economic fallout. White House Press Secretary Karoline Leavitt suggested no country with “unfair” policies would be exempt, and Australia’s inclusion remains possible.
Trump’s trade team has indicated that the final list could target a so-called “dirty 15” list of countries with the largest trade deficits with the U.S. While Australia isn’t a top offender, the digital regulation spat has placed it in the crosshairs of one of Washington’s most politically powerful sectors.
As Silicon Valley flexes its lobbying muscle and trade tensions rise, Australia is being forced to defend its right to regulate digital markets in the public interest. The News Media Bargaining Code has always been about more than money—it’s about the role of journalism in democracy and who should pay for it in a platform-dominated world.
But with tariffs looming and tech platforms threatening to walk away from news altogether, the question is whether Australia can hold the line without paying a heavy price.
