The Albanese Government has unveiled its new “news bargaining incentive” that will see digital platforms forced to pay Australian publishers for news content.
Under the new incentive, a charge will be applied to digital platforms, which will be refunded by an offset if they do pay news companies directly instead. The government said that this will serve as an attempt to prevent companies like Meta from side-stepping the news media bargaining code.
The original News Media Bargaining Code, introduced in 2021 by Scott Morrison’s government, requires tech giants, like Meta and Google, to pay for the use of Australian news content on their platforms.
Initially, the code resulted in commercial agreements worth an estimated $70 million annually for Australian news publishers. However, earlier this year, Meta announced it would not renew these deals, leaving the future of such payments in question.
Speaking at a press conference today alongside Communications Minister Michelle Rowland, Assistant Treasurer Stephen Jones said that the pair had been playing “4D chess on this”.
“The government wants Australians to continue to have access to quality news content on digital platforms,” Jones said.
“Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism.
“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay.”
Ultimately, the goal was to ensure that all platforms involved and all publications could get on with producing journalism. Jones said banning news would be a “very non-commercial response”.
“The previous government legislated the news media bargaining code, an effective tool to facilitate commercial agreements between news, businesses, and digital platforms. Today, we announce measures to strengthen that code,” said Jones.
Jones said that there is no intent to raise revenue since the charge will be set at a level higher than digital platforms would pay under direct deals – ultimately incentivising them to pay publishers instead of the government.
“The incentive will contain a charge on relevant platforms based on Australian-sourced revenue. The charge will include a generous offset for the commercial agreements that are voluntarily entered into between the platforms and news media businesses … [It] will commence from 1 January 2025”.
Jones said it would not be an “economically rational decision” if tech companies chose to opt out of commercial deals with Australian news publishers.
“This measure will be administered by the Tax Office and all of the powers that the Tax Office has available to it… We’re determined to defend our sovereignty and defend rights as a government to protect things that are critical to our democracy”.
“I hope this creates the opportunity to turn a new page and say the past is the past, we’ve got new arrangements, new incentives in place – let’s come back to the table and strike some deals, make some agreements”.
The government has consulted with digital platforms about the move and “made it very clear that we want to see them continue to make a contribution to journalism in Australia.”
“We think it’s their obligation,” he said.
Jones would not let up on the response from these platforms. “I’ll leave it to the digital platforms to speak for themselves. I’m not going to presume to talk for them”.
Publishers React
Michael Miller, executive chairman of News Corp Australia, said that he welcomes the work the government has undertaken in designing the News Bargaining Incentive that “recognises and strengthens the principle of commercial negotiations between tech platforms and Australian media companies”.
“This will provide a foundation for rebuilding the media industry after the loss of an estimated 1000 jobs this year, and ensuring Australian news media businesses will continue to deliver inquiring and professional journalism, which has never been more important to cohesive, democratic societies”.
“Following today’s announcement, I will be contacting Meta immediately to seek to restart the commercial relationship with News Corp Australia that it walked away from earlier this year”.
“I will also be making contact with TikTok with the intention of reaching a commercial agreement with them as well”.
“I believe news publishers and the tech platforms should have relationships that benefit both parties on commercial and broader terms, and the Government has set a clear timetable to conclude discussions”.
“The package of recent Australian initiatives aimed at social media, which now include restricting under 16s from accessing social media, moves to take on online scams and a new ex-ante competition framework, shows the Government is prepared to be a leader in setting the rules and expectations for how big tech should operate in our society”.
Seven West Media managing director and chief executive officer Jeff Howard, said the the media company is “pleased to see the proposed News Bargaining Incentive will be designed to motivate social media and search platforms to do commercial deals with media businesses”.
“We welcome a strengthening of the News Media Bargaining Code and the Government’s commitment to ensuring Australian media businesses are fairly remunerated for the news we produce, so that Australians continue to receive reliable and trusted Australian news.
“An enhanced News Bargaining Incentive means trusted and reliable news will continue to appear on these platforms, combatting the growing problem of misinformation and disinformation,” said Howard.
Matt Stanton, acting CEO of Nine Entertainment said that today is a “positive step forward for Australians seeking ongoing access to news sources that can be trusted and Nine welcomes the action taken by the Government to strengthen the News Media Bargaining Code framework”.
“We hope today’s announcement will help ensure access to reliable news sources and protect the sustainability of Australian news media.
“We have been working closely with the Government on this issue in recent months and look forward to working collaboratively on the implementation to ensure the right regulatory frameworks are achieved.
“We remain open to direct engagement with international tech companies to accelerate the practical implementation of the Government’s proposed approach,” said Stanton.
A spokesperson for Network 10 said that it is “hopeful common sense prevails, and this brings all parties back to the negotiating table”.
“We appreciate the Government’s proposal will apply pressure on the social media and tech companies to fairly remunerate Australian news media services for the work of its journalists and newsrooms. This provides real tangible benefit to these platforms and ensures that trusted, regulated, local and impartial news content is accessible online,” the spokesperson said.
Independent publisher Man Of Many said in a press release that it supports the sentiment from Albanese that “platforms benefiting financially from Australian audiences must contribute to quality journalism”.
“The government must ensure that the legislation addresses the needs of smaller, independent publishers”.
However, the publication did raise concerns about the potential implications for independent publishers.
“While the proposal offers an opportunity to improve funding structures and accountability, the legislation must ensure fair support for independent outlets and safeguard against unintended consequences such as exacerbating existing disparities”.
“Man of Many acknowledges the government’s intent to strengthen the NMBC through the proposed “News Bargaining Incentive,” which uses a levy-and-offset system to encourage fair negotiations between digital platforms and publishers”.
The publishers highlighted the following concerns:
- Exclusion of Smaller Publishers: Platforms may prioritise deals with larger publishers to offset liabilities, potentially sidelining independent outlets.
- Opaque Distribution Mechanism: Smaller publishers could be disadvantaged in accessing redistributed funds without clear criteria for fund allocation.
- Risks of News Bans: As seen in Canada, platforms like Meta may opt to block news content entirely rather than comply, cutting off vital referral traffic for independent publishers already excluded from funding agreements.
- Sustainability Challenges: Funding must ensure long-term viability rather than short-term relief, which has led to redundancies even among major media companies.
Commercial free-to-air broadcasters industry body Free TV said the changes will contribute to the sustainability of commercial TV broadcasters and other verified news content creators so that all Australians can continue to access trusted news wherever and however they choose.
“Australians need a strong and vibrant news media sector now more than ever. They turn to their local trusted news providers through bushfires, floods and global instability. The Government’s announcement today that Meta and other digital platforms will be incentivised to make commercial deals with news publishers through a charge and offset mechanism, marks a critical step in safeguarding the future of local journalism,” said Free TV Chair Greg Hywood.
Free TV CEO Bridget Fair said that the deal was a win for the Australian public and for the sustainability of Australian news media.
“Global digital platforms enjoy extreme market power and the inability of Australian media companies to negotiate fair value for their content with these essential and unavoidable business partners is a threat to our ability to continue to access the local journalism that is essential to our democracy.
“The News Bargaining Incentive is a crucial step forward for Australian media and more importantly for the millions of Australians who want their local broadcast services to provide them with trusted news and shared entertainment experiences.
“We look forward to working with the Albanese Government on the consultation process for the final design of the scheme in coming months.”
ThinkNewsBrands CEO, Vanessa Lyons said that “Australia’s news industry is vital for the proper functioning of our democratic society and Australian journalists and publishers deserve to be fairly compensated for the important work they do”.
“The ‘news bargaining incentive’ also acknowledges Australians’ strong engagement with news, the close relationship they have with it, and the importance they place in quality and trusted publishers.
“ThinkNewsBrands welcomes the Federal Government’s announcement today that it will incentivise major digital platforms to pay Australia’s news publishers”.
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.”
Social Media’s Response
A spokesperson for Meta told B&T: “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 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”.
A spokesperson for TikTok told B&T: “As an entertainment platform, TikTok has never been the go to place for news. We will actively engage in the consultation process and look forward to hearing more details.”
B&T contacted X and Google to comment on the deal.
