The Australian government has opened draft legislation for the News Bargaining Incentive (NBI) for consultation, proposing that tech giants pay financial penalties if they fail to establish commercial deals with local news services.
- Target Platforms: Large digital platforms including Meta, Google, and ByteDance (TikTok).
- Payment Structure: Fees are calculated as a proportion of company revenue unless commercial agreements are reached.
- Eligibility: Applies to news organizations with annual revenue exceeding $150,000.
Mechanics of the News Bargaining Incentive
Under the draft NBI, large digital platforms will incur fees that can be reduced by setting up commercial deals with Australian news publishers. If a platform chooses not to enter an agreement, it must pay the full charge based on a proportion of the company’s revenue.
These funds are intended to flow back into the news media sector to support journalists. The government is currently seeking feedback on the most effective way to distribute these funds.
“In an increasingly uncertain world, it is crucial Australians are able to get news seen through Australian eyes and with an Australian perspective,” Assistant Treasurer Daniel Mulino said. He added that the government wants platforms to act as partners in innovation through mutually beneficial commercial deals.
Industry Response and Sustainability
A joint statement from major media companies—including Nine Entertainment Co, Network Ten, ABC, SBS, Southern Cross Media Group, Australian Community Media, News Corp Australasia, and The Guardian Australia—described the draft legislation as a “critical step toward securing the future of Australian news.”
The group warned that journalism becomes unsustainable if digital platforms profit from news content without paying for its use. They emphasized that the open exchange of news and opinions is vital to the vibrancy of Australian democracy.
Closing Gaps in Previous Legislation
The proposed law aims to fix a shortcoming in the 2021 News Media Bargaining Code. Under the previous framework, social media giants could avoid payment agreements by simply removing news content from their services.
This issue became prominent in early 2024 when Meta announced it would not renew its news agreements in Australia. While the media group noted that Google has been positive about making deals, they urged other platforms to “step up.”
Prime Minister Anthony Albanese stated that his government will continue to back Australian news and journalists, calling them the “lifeblood” of the media sector. He noted that local stories cannot be told without local journalists.
The public feedback period for the draft legislation closes on May 18 and can be submitted online.
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