Australia’s government recently announced plans for new rules that could cost companies like Meta (owner of Facebook and Instagram), Google, and TikTok millions of dollars if they fail to compensate Australian media outlets for news content.
Assistant Treasurer and Minister for Financial Services, Stephen Jones, outlined the proposal during a press conference. “The news bargaining initiative will … create a financial incentive for agreement-making between digital platforms and news media businesses in Australia,” Jones said.
The rules would apply to social media platforms and search engines with annual revenue in Australia exceeding $250 million, reports Reuters. Companies can reduce these charges by voluntarily entering into commercial agreements with news publishers.
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Not surprisingly, tech firms are unhappy with the plan. A Meta spokesperson said, “The proposal fails to account for the realities of how our platforms work, specifically that most people don’t come to our platforms for news content and that news publishers voluntarily choose to post content on our platforms because they receive value from doing so.”
Meta has already reduced its focus on news globally, citing a shift in user interests. It discontinued the News tab in several countries, including the UK, France, and Germany, and plans to stop similar features in Australia and the US.
This move is the latest in a series of measures aimed at holding tech giants accountable in Australia. Last month, the country became the first to ban social media use for children under 16. Canberra is also planning hefty fines for platforms that fail to prevent online scams.
The current proposal builds on earlier legislation passed in 2021 that required platforms to compensate news publishers for content. At the time, Meta briefly blocked users from sharing news links but later struck deals with Australian media, including News Corp and ABC. However, these agreements will not be renewed beyond 2024.
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News Corp Australia’s Executive Chairman, Michael Miller, welcomed the new rules, saying, “I believe news publishers and the tech platforms should have relationships that benefit both parties on commercial and broader terms.” Miller added that he would approach Meta and TikTok to discuss potential deals.