Sydney: The Australian government introduced a “news bargaining incentive,” requiring digital platforms to either pay a charge or negotiate directly with publishers for news.
The charge is designed to encourage platforms to pay publishers directly rather than the government, with the offsetting mechanism encouraging fair compensation.
The measure responds to the announcement made in March by Meta, Facebook and Instagram’s parent company, that it would stop funding Australian news through deals with publishers.
The new model mandates digital platforms with over $250m in Australian revenue, such as Meta, ByteDance (TikTok), and Google, to either pay a fixed charge or establish direct deals with news publishers.
While the government ensures global payments to publishers won’t decrease; smaller publishers could still be disadvantaged if larger platforms negotiate only with major players.
However, the government will have to develop a distribution mechanism in case any platform opts to pay the charge to the government instead of striking deals with media companies.
The law will be backdated to January 2025, and discussions about the charge level and distribution will take place in 2025. Meta has criticized the proposal, claiming most users don’t visit Facebook for news.
What government say?
What publishers say?
News Corp’s Michael Miller stated the initiative would help rebuild after job losses. Executives from Seven West Media and independent publisher Man of Many highlighted the need for fair compensation and support for independent outlets.
The legislation aims to ensure reliable news on platforms while addressing misinformation and supporting the media industry.