"Meta and other tech companies refusing to sign content deals with Australian news outlets face millions in new fines, with Labor's proposed media bargaining incentive set to impose penalties based on the local revenue of major platforms. Large social media and search platforms with Australian-derived revenue of at least $250m will be subject to the new rules, irrespective of whether they carry news content, according to new detail released by the assistant treasurer, Daniel Mulino."
"First announced in December 2024, its start date is yet to be decided and will be subject to a month-long public consultation by the government. The new rules are being designed to force payments from platforms opting out of the Morrison-era news media bargaining code, which has secured about 30 content deals worth an estimated $200m to $250m each year for publishers, including Guardian Australia and other news brands."
"Declining advertising revenues have hurt major media operators including News Corp, Nine and Seven West Media, with staff redundancies and cost cutting, even as digital players including the parent companies of Google and Facebook made hundreds of millions in profits. Meta, which owns platforms including Facebook and Instagram, has refused to sign new deals under the existing code, while Google has voluntarily renewed some of its agreements with publishers, albeit at reduced rates."
New rules will target large social media and search platforms with at least $250 million in Australian-derived revenue and impose penalties based on local revenue for refusing news content deals. The incentive aims to compel payments from platforms that opt out of the Morrison-era news media bargaining code and to support smaller publishers reliant on digital distribution. Start date remains undecided and will follow a month-long public consultation. The existing code has secured about 30 content deals worth an estimated $200–250 million annually for publishers. Declining advertising revenues have caused redundancies and cost-cutting at major media companies, while tech parents of Google and Facebook posted large profits. Meta has refused new deals under the code; Google renewed some agreements at reduced rates. Platforms can avoid obligations by removing news, as Meta did in Canada.
Read at www.theguardian.com
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