Digital platforms face new taxes if they don't pay for news.
The federal government is attempting to force digital platforms to the negotiating table with media owners.
Canberra has announced the News Bargaining Incentive designed to compel Google, Meta and other platforms to come to terms with Australian publishers.
The government says the Bargaining Incentive is designed to encourage digital platforms to enter into or renew commercial deals with news publishers.
“Platforms that choose not to enter or renew commercial agreements with news publishers will pay the charge. Platforms with these agreements will, however, be able to offset their liability," the government said.
“The incentive will apply to large digital platforms operating significant social media or search services irrespective of whether or not they carry news.”
The new rules, to be enforced next year, is a reincarnation of the news media bargaining code.
“The government wants Australians to continue to have access to quality news content on digital platforms,” said assistant treasurer Stephen Jones.
“Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism.
“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay.”
Meta earlier this year said it wouldn’t be renewing its deals with Australian news publishers, worth tens of millions of dollars.
The move was cited by publishers as the reason behind redundancies in news rooms.
Michael Miller, executive chairman, news corp australasia, said the News Bargaining Incentive recognises and strengthens the principle of commercial negotiations between tech platforms and Australian media companies.
“This will provide a foundation for rebuilding the media industry after the loss of an estimated 1000 jobs this year, and ensuring Australian news media businesses will continue to deliver inquiring and professional journalism, which has never been more important to cohesive, democratic societies.
“I will be contacting Meta immediately to seek to restart the commercial relationship with News Corp Australia that it walked away from earlier this year.
“I will also be making contact with TikTok with the intention of reaching a commercial agreement with them as well.
“I believe news publishers and the tech platforms should have relationships that benefit both parties on commercial and broader terms, and the Government has set a clear timetable to conclude discussions.”
Seven West Media CEO Jeff Howard said Seven West Media is pleased to see the proposed News Bargaining Incentive will be designed to motivate social media and search platforms to do commercial deals with media businesses.
“We welcome a strengthening of the News Media Bargaining Code and the Government’s commitment to ensuring Australian media businesses are fairly remunerated for the news we produce, so that Australians continue to receive reliable and trusted Australian news," he said.
“An enhanced News Bargaining Incentive means trusted and reliable news will continue to appear on these platforms, combatting the growing problem of misinformation and disinformation.”
Free TV CEO Bridget Fair said this is a win for the Australian public and for the sustainability of Australian news media.
"Global digital platforms enjoy extreme market power and the inability of Australian media companies to negotiate fair value for their content with these essential and unavoidable business partners is a threat to our ability to continue to access the local journalism that is essential to our democracy," she said.
“The News Bargaining Incentive is a crucial step forward for Australian media and more importantly for the millions of Australians who want their local broadcast services to provide them with trusted news and shared entertainment experiences.
“We look forward to working with the Albanese Government on the consultation process for the final design of the scheme in coming months.”
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