12-12-2024 (SYDNEY) The Australian government has unveiled sweeping reforms that will compel digital platforms to financially support news publishers, effectively closing loopholes in the existing news media bargaining code.
The Albanese government’s new “news bargaining incentive” scheme, announced yesterday, introduces a mandatory charge for digital platforms, which can be offset if they establish direct payment arrangements with news organisations.
Under the reformed framework, tech giants with Australian revenues exceeding $250m—including Meta, Google, and ByteDance’s TikTok—must either pay a fixed charge or negotiate direct deals with publishers. The measure, backdated to 1 January 2025, comes in response to Meta’s March announcement to cease funding Australian news content.
The scheme’s innovative structure sets the government charge higher than typical direct-deal payments, creating a strong financial incentive for platforms to negotiate with publishers rather than pay the levy. This design aims to prevent scenarios where platforms might withdraw from news services altogether to avoid regulatory obligations.
“Digital platforms have reaped substantial benefits from their Australian operations. It’s time they shoulder their social and economic responsibilities in supporting quality journalism,” said the government spokesperson during the announcement.
Whilst the reform ensures a sustained flow of funds from platforms to the news industry collectively, concerns remain about potential impacts on smaller publishers. Critics note that platforms could theoretically satisfy their offset requirements through exclusive deals with major media organisations.
The government plans to conduct consultations throughout 2025 regarding the charge’s structure and distribution mechanisms, particularly for cases where platforms opt for government payments over direct publisher agreements.
This reform builds upon the original 2021 news media bargaining code, which generated approximately $200m in platform payments to Australian media outlets. The code was initially implemented to address significant power imbalances between digital platforms and news publishers.
The development follows October’s parliamentary joint select committee recommendation for a “digital platform levy” to support public interest journalism, particularly noting concerns about Meta’s strategic retreat from news partnerships.
Industry observers note this legislation positions Australia at the forefront of global efforts to ensure digital platforms contribute fairly to the news ecosystem they benefit from. The reform’s implementation will be closely watched by other nations considering similar measures to support their news industries.
