In brief
- The Australian government has unveiled draft laws for the news bargaining incentive.
- The laws would force tech giants like Meta to pay for Australian news content used on their platforms.
Social media companies will be forced to pay more money for using news content on their platforms unless they strike deals with media outlets.
Prime Minister Anthony Albanese unveiled draft laws for the news bargaining incentive, which encourages agreements to be struck between tech giants and media companies, on Tuesday.
If bargains are struck between the companies for content, the social media platforms will only pay 1.5 per cent of revenue to the government, compared with a higher amount of 2.25 per cent if no deal is made.
Albanese said Australian journalism needed to be properly paid for by tech companies.
"Our government is taking the next steps to ensure that Australian journalism is sustainable now and into the future, by ensuring that large digital platforms cannot avoid their obligations," he told reporters in Canberra.
"What we are encouraging is for organisations to sit down with news organisations, get these deals done, and then we can move forward."
The draft laws were released ahead of the legislation being introduced to parliament in coming weeks.
There have been consultations with Meta — which owns Facebook and Instagram — as well as Google and TikTok.
The deals would be offset by 150 per cent if agreements are struck with large media organisations, and 170 per cent for smaller newsrooms or non-traditional outlets.
"Investment in journalism is critical to a healthy democracy. It matters," Albanese said.
"If the work has been done by the people here at this press conference, in other places right around Australia, then your work needs to have a monetary value attached to it.
"It shouldn't just be able to be taken by a large multinational corporation and used to generate profits for that organisation with no compensation appropriate for the people who produce that creative content."
The heads of all Australia's media outlets, including the ABC, News Corp Australasia, Nine Entertainment Co, and SBS, released a joint statement on Tuesday supporting the federal government's move.
"If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable. It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians," the statement read in part.
Meta signalled its dissatisfaction with the draft laws in a statement released Tuesday afternoon.
"A government-mandated transfer of wealth from one industry to another, with no connection to the value exchanged, will not deliver a sustainable or innovative news sector," the statement read. "Instead, it will create a news industry dependent on a government-administered subsidy scheme.
"We are reviewing the details of the exposure draft and will provide feedback through the consultation process.”
A previous version of the news bargaining code was rolled out in 2021 by the Morrison government.
However, social media companies such as Meta walked away from deals with Australian news outlets in 2024.
Communications Minister Anika Wells said a changed deal was needed as the media landscape evolves.
"People are increasingly getting their news directly from Facebook, from TikTok and from Google," she said.
"We believe it's only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue."
It comes as the Greens called for the federal government to implement a tax on big tech companies.
"Big tech platforms make massive profits from ripping off the content of journalists and creators, but they are also making billions from monetising the personal data of Australians and shifting profits offshore," the party's communication spokeswoman Sarah Hanson-Young said.
"Billion-dollar tech corporations are exploiting loopholes and shifting profits offshore, and Australians are rightly asking why they're getting away with it."
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