Tech giants could soon face financial consequences if they don’t make commercial deals with Australian news services.
The long-awaited draft legislation of the News Bargaining Incentive (NBI) was today opened for consultation by the Albanese government, triggering a major milestone for the media sector.
Under the draft News Bargaining Incentive (NBI), large digital platforms including Meta, Google and Tiktok’s owner ByteDance will incur fees that can be reduced by setting up commercial deals with Australian news publishers.
If the digital platform chooses not to set up a commercial agreement, they will pay the charge, which is calculated as a proportion of the company’s revenue, in full.
Those fees will flow back to the news media sector to support journalists, with the government now welcoming feedback on the best way to distribute those 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.
“Large digital platforms have an important role to play in providing access to news for all Australians and being partners in innovation, we would like to see them work with the news media on commercial deals with benefit to both parties.”
Digital giants Google and Facebook will be forced to pay for news content generated by the Australian media in a lifeline for the struggling industry. (AP Photo/Marcio Jose Sanchez, File)
Major media companies across the country, including Nine, the publisher of this website, called the draft legislation a “critical step toward securing the future of Australian news” in a joint statement released today.
“The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions. This is under threat,” the conglomerate wrote.
“If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians.”
The statement was penned by executives from Nine Entertainment Co, as well as Network Ten, ABC, SBS, Southern Cross Media Group, Australian Community Media, News Corp Australasia and The Guardian Australia.
The proposed law sets out to address a shortcoming in the current News Media Bargaining Code, set up by the Morrison Government in 2021, which allowed social media giants to avoid entering into agreements by removing news from their service.
In early 2024, Meta announced it would not renew its Australian news agreements.
Prime Minister Anthony Albanese. (9News)
Many news services across the country currently distribute their content for free online.
The Albanese Government committed to establishing the NBI in December 2024, with the aim of incentivising social media giants to “contribute to the sustainability of Australian news and journalism”.
“It has been more than two years since Meta walked away from previous deals and almost 18 months since the government announced the NBI,” the joint media statement read.
“While Google has been positive about doing deals, others need to come to the table, and all platforms need to step up.
“We urge all parliamentarians to support safeguarding Australian journalism and the vital role it plays in our democracy, for all Australians.”
The NBI will apply to Australian news organisations, including newspapers, magazines, TV news programs, radio programs and websites, with an annual revenue over $150,000, according to the draft legislation.
“Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them,” Albanese said.
“Local news matters to local communities and these stories can’t be told without Australian journalists.
“My Government will always back Australian journalists and Australian news.”
The feedback period closes on May 18 and can be submitted online.
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