The Australian government has announced the final details of a new legislative plan designed to ensure major technology companies compensate local media organizations for the news content featured on their platforms. Under the proposed News Bargaining Incentive, digital platforms with significant Australian advertising revenue will be required to strike commercial deals with news publishers. If these companies fail to reach such agreements, they will face a 2.5% levy on their local digital advertising income. This new framework aims to replace the 2021 News Media Bargaining Code, which the government deems no longer effective as previous commercial agreements have lapsed or were not renewed by some platforms.
The policy targets large digital platforms that earn at least A$250 million in annual digital advertising revenue from search or social media services in Australia. The scope of the legislation has been expanded to include professional networking sites like LinkedIn, alongside major players such as Meta, Google, and TikTok. By tying the potential levy to advertising revenue rather than total business income, officials intend to create a more targeted approach to funding the sustainability of independent journalism. The government has emphasized that all funds collected through this levy will be redistributed directly to the media sector to support local newsrooms.
To avoid the mandatory levy, tech companies must enter into commercial agreements with Australian news publishers. The government has set a requirement for platforms to strike at least six deals with publishers to fully discharge their liability under the new incentive. Assistant Treasurer Daniel Mulino stated that the government has engaged in extensive consultation with both the tech industry and media organizations to ensure the policy is fair and consistent with international obligations. The legislation is expected to be introduced to parliament when it resumes later this year, marking a significant step in the ongoing global debate regarding the relationship between digital platforms and news publishers.