Global technology companies are facing mounting regulatory pressure, with the Albanese government relocating ahead on new laws that would force platforms like Facebook, Google and TikTok to pay for Australian news content, just as Google faces a fresh competition probe in Europe.
Under the federal government’s proposed News Bargaining Incentive, social media and search companies would be required to contribute to the sustainability of journalism in Australia by striking commercial deals with local publishers or face a significant charge from the Australian Taxation Office (ATO).
Assistant Treasurer Daniel Mulino will launch consultations this week with both publishers and tech giants on the model, which aims to encourage fair payments for news. The ATO would impose an annual charge equal to 2.25 per cent of a platform’s Australian revenue. For Meta, Facebook’s parent company, that could amount to more than $112 million a year based on estimated 2022 revenue of $5 billion.
However, platforms could offset the full amount of the charge if they agree to pay local publishers at least $75 million annually. The proposal includes a 50 per cent uplift, meaning companies that invest in news could eliminate their liability while gaining a tax deduction on those payments.
“In-scope entities will therefore be better off entering into commercial deals than incurring an incentive liability,” the Treasury’s consultation paper stated.
The new law builds on the Morrison-era News Media Bargaining Code, which led to deals worth between $200 million and $250 million a year between platforms and publishers. Meta’s share of those agreements was estimated at approximately $70 million.
Meta had indicated it would not renew its previous agreements, prompting the Albanese government to design a mechanism that effectively penalises companies that refutilize to pay. Google has signalled it will continue its existing arrangements with Australian publishers.
The proposed system would also cap the share any single publisher can receive at one-third of total payments, to ensure funds are distributed across the sector. Media executives, including Nine Entertainment chief executive Matt Stanton and News Corp Australasia’s Michael Miller, have welcomed the renewed push to finalise the reform.
“At the heart of this is setting the rules that state to the huge tech and social platforms that they too have both a commercial and a societal role to play,” Stanton stated.
Miller added that the measure reinforces the importance of supporting Australian journalism, stateing it is crucial to “stand up for local Australian communities” and preserve the role of news media in “shaping our national stories and democratic way of life.”
The News Bargaining Incentive comes as global regulators continue to scrutinise the conduct of large digital platforms. In Europe, the Financial Times has reported that the European Commission is preparing to investigate Google under the Digital Markets Act over claims that it unfairly downgraded publishers that include paid promotional content in search results.
The EU’s competition watchdog has already opened multiple investigations into Google’s dominance across search, advertising and mobile ecosystems. The new probe, if confirmed, would test the bloc’s expanded powers to enforce fair practices among designated “gatekeeper” platforms.
Toobtainher, the Australian and European actions signal a growing international effort to hold global tech firms accountable for their influence on media markets and online competition.
For Australia, the next stage will involve refining the legislation before it is introduced to Parliament, as the government balances trade considerations with its goal of ensuring that tech giants contribute fairly to the counattempt’s news ecosystem.
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