Australia Plans New Rules to Incentivize Big Tech Firms to Pay for News Content
Australia plans to create a financial incentive for big tech firms to pay media companies for news content on their platforms, according to Assistant Treasurer and Minister for Financial Services Stephen Jones. The “news bargaining initiative” will pressure global tech giants like Facebook-owner Meta Platforms and Google to pay publishers for content or face the risk of paying millions to continue operating in Australia.
The move comes after Australia passed laws in 2021 that required the US tech giants to compensate media companies for the links that drive readers – and advertising revenue – to their platforms. The new rules would create a financial incentive for agreement-making between digital platforms and news media businesses in Australia, with a charge to be offset for any commercial agreements that are voluntarily entered into.
The platforms at risk of the charge will be significant social media platforms and search engines with an Australian-based revenue in excess of 250 million Australian dollars (about $160 million). Meta, which has struck deals with several Australian media firms including News Corp and the Australian Broadcasting Corp, has expressed concerns about the proposal, saying it fails to account for how their platforms work and that news publishers voluntarily choose to post content for the value they receive. Meta has also announced it will not renew its current arrangements with the media firms beyond 2024.