Australia has passed a new law that could force major technology companies to pay millions of dollars to local news organisations if they fail to reach commercial agreements for news content carried on their platforms.
The News Bargaining Incentive, passed by parliament on Thursday, imposes a levy of 2.5% of advertising revenue on major technology platforms that do not strike deals with Australian media companies.
The measure applies to companies including Meta, Google, TikTok and Microsoft’s LinkedIn, provided they operate a significant social media or search service in Australia and generate more than A$250 million ($178 million) in annual local advertising revenue.
The money raised through the levy will be directed to Australian news organisations whose content helps generate user engagement and advertising revenue for the technology companies.
However, platforms can avoid the levy by reaching commercial agreements with at least eight different news publishers before the end of their reporting period.
Payments made under those agreements will be deducted from the companies’ levy liability, with larger incentives available for deals involving smaller news organisations.
Spending with large publishers will receive a 150% offset, while agreements with small and medium-sized outlets will receive a 200% offset. However, no single agreement can account for more than 25% of a platform’s total levy liability.
See also: Meta Trial: Zuckerberg Put Growth Over Child Safety – Former Executive Tells Court
The Australian government in a statement said that the legislation was intended to encourage technology companies to negotiate directly with news publishers rather than simply pay the levy.
“The legislation is here, and the message to platforms to pursue commercial deals is clear,” the government said.
“Deals will need to be finalised before the end of a digital platform’s financial reporting period to be used to offset their liability in that period.”
The government described the legislation as “an important day for Australian news businesses and Australian journalism.”
The new law builds on Australia’s efforts to make global technology companies contribute more to the local media industry, particularly as traditional news organisations face declining advertising revenue and increasing dependence on digital platforms for audience reach.
The passage of the legislation comes a day after Australia’s parliament approved new laws restricting gambling advertisements.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
