- Australia's Parliament passed the News Bargaining Incentive on August 20, requiring tech giants to negotiate with local media outlets or face levies.
- The levies will apply to Meta, Alphabet's Google, TikTok, and Microsoft, among others, that have a significant presence in Australia.
- Companies that do not reach agreements with at least eight different publishers by the end of their reporting period could face millions in levies.
- The levy is set at 2.5% of the Australian revenue generated from advertisements for firms that fail to reach agreements.
- The passage of the News Bargaining Incentive came one day after laws restricting gambling advertisements were passed.
- The Australian News Media Bargaining Code was established in 2021, mandating tech companies to negotiate with publishers directly.
- The government emphasized that the new deals must support the production of news content or relate to news content made available online by the platform.
Australia's Parliament has enacted a law compelling tech giants to either negotiate with local news outlets or face significant financial penalties. The News Bargaining Incentive requires companies like Meta, Google, TikTok, and Microsoft to strike deals with at least eight publishers to avoid levies.123
Failure to comply could result in a 2.5% tax on their Australian advertising revenue, with proceeds directed to local news organizations. The law targets firms with a significant presence in Australia, defined as those generating over A$250 million (approximately $178 million) in local revenue.5
The government has established strict guidelines for these agreements, ensuring they support the production of news content. Notably, spending with large publishers offers a 150% offset, while small and medium-sized outlets provide a 200% offset against levy liabilities. Each deal is capped at 25% of a platform's total levy liability, preventing companies from fulfilling obligations through a few large partnerships.9
The legislation is seen as a pivotal moment for Australian journalism, with the government stating, "This is an important day for Australian news businesses and Australian journalism." The law builds on the Australian News Media Bargaining Code established in 2021, which aimed to facilitate negotiations between tech companies and publishers.78
“The levy applies to firms with significant social media or search presence and local ad revenue above A$250 million ($178 million). Platforms can avoid charges by signing deals with at least eight publishers, with spending on small outlets earning a 200% offset.”
Firstpost
The News International
