Australia to force tech giants to keep paying for news

Australia's government has announced new regulations that will require major technology companies to compensate local news publishers for the content they share. This decision is a follow-up to a groundbreaking law passed in 2021, which aimed to ensure that large corporations like Meta and Google would pay for the news they host on their platforms. Earlier this year, Meta, the parent company of Facebook and Instagram, declared that it would not renew its payment agreements with Australian news organizations, leading to a standoff with lawmakers. The newly introduced rules, revealed on Thursday, will mandate that companies generating over A$250 million in annual revenue must enter into commercial agreements with media organizations. If they fail to do so, they may face increased taxes. While the specifics of this scheme are still being finalized, it will apply to platforms such as Facebook, Google, and TikTok. In response to the announcement, Meta expressed concern that the government was 'charging one industry to subsidize another. ' Unlike the previous model, the new framework, known as the News Bargaining Incentive, will require tech firms to pay even if they do not reach agreements with publishers. Assistant Treasurer Stephen Jones emphasized that digital platforms benefit significantly from their operations in Australia and have a social and economic obligation to support access to quality journalism for Australians. The earlier News Media Bargaining Code allowed news organizations to negotiate deals with tech giants while also requiring companies like Facebook and Google to invest millions in local digital content. This code aimed to address the power imbalance between publishers and tech companies and to mitigate some of the financial losses traditional media outlets have experienced due to the rise of digital platforms. As the agreements made under this arrangement were nearing expiration, Meta announced it would not renew them, resulting in an estimated A$200 million loss in revenue for Australian publishers. Instead, Meta indicated it would phase out its dedicated news tab on Facebook in Australia and redirect the funds to other areas. The company stated, 'We know that people don't come to Facebook for news and political content… news makes up less than 3% of what people around the world see in their Facebook feed. ' This announcement drew a strong reaction from Prime Minister Anthony Albanese's government, which characterized Meta's decision as a 'fundamental dereliction' of its responsibilities to Australian users. Communications Minister Michelle Rowland warned that the absence of news on the platform could lead to a rise in misinformation. The new taxation model is set to begin in January 2025 and will be solidified into law once parliament reconvenes in February. The government asserts that the purpose of this model is to ensure that tech companies contribute to Australian journalism in exchange for tax offsets, rather than to generate additional revenue.