Tech Giants Like Meta, Google to be Forced to Pay for Australian News
Australia has announced new regulations that will require major tech companies, including Meta and Google, to financially compensate Australian media outlets for news content shared on their platforms. The initiative, dubbed the “News Bargaining Initiative,” is designed to create a financial incentive for digital platforms to reach agreements with local news publishers, Assistant Treasurer and Minister for Financial Services Stephen Jones revealed on Thursday.
The rules aim to ensure that tech giants such as Facebook’s parent company, Meta, and Alphabet’s Google pay news organizations for content that drives traffic and generates advertising revenue on their platforms. Jones emphasized that the initiative targets social media and search engine platforms with an Australian revenue exceeding 250 million Australian dollars (approximately $160 million).
Under the new plan, platforms will be required to make payments unless they enter into voluntary commercial agreements with media businesses. Jones highlighted that the initiative is meant to encourage negotiations between tech firms and media organizations to create mutually beneficial financial arrangements.
This move builds on previous legislation passed in 2021, which forced global tech companies to compensate local media for links to their news content. The laws were aimed at addressing the imbalance between digital platforms and traditional news outlets, as the former benefited from increased traffic without paying for the content that attracted users.
In response to the announcement, Meta expressed concerns about the proposed changes. A company spokesperson stated that the current law does not accurately reflect the nature of its platform, noting that most users do not visit Facebook for news. The spokesperson also argued that publishers voluntarily post content on the platform, benefiting from the exposure and the value it generates.
Meta had previously negotiated deals with Australian media organizations, including News Corp and the Australian Broadcasting Corporation, but announced it would not extend those agreements beyond 2024.
