On Tuesday, the Australian government introduced a sweeping set of draft regulations targeting three of the world’s largest technology companies — Meta, Google, and TikTok — that would mandate the firms compensate domestic news publishers for hosting journalistic content, or face a mandatory annual levy equal to 2.25% of their Australian revenue. The legislative update marks a major correction to the country’s existing news media bargaining framework, closing a longstanding loophole that previously allowed digital platforms to avoid payment obligations by simply removing all news content from their services, a tactic both Meta and Google have deployed in past standoffs with Canberra over similar policy proposals.
Speaking to reporters after the draft was released, Prime Minister Anthony Albanese made clear that the new rules aim to hold large multinationals accountable for their reliance on original journalism to drive user engagement and platform growth. “Large digital platforms cannot avoid their obligations under the news media bargaining code,” Albanese said, noting that the three companies were specifically targeted based on their massive domestic user bases and significant Australian annual revenue. Under the draft framework, the firms will first get the opportunity to negotiate voluntary commercial compensation deals with local news outlets; only those that refuse to reach agreements will be subject to the compulsory levy.
The policy comes as traditional news organizations across the globe face an existential crisis: as more consumers turn to social media and search engines for their daily news, the majority of digital advertising revenue has flowed to big tech platforms, rather than to the newsrooms that create the original content attracting those users and ad dollars. A 2024 study from the University of Canberra confirms this shifting landscape, finding that more than half of all Australian adults now get their news primarily from social media platforms.
Albanese emphasized that the core principle of the legislation is basic fairness for journalism. “Journalism needed to have a ‘monetary value attached to it,’” he said. “It shouldn’t be able to be taken by a large multinational corporation and used to generate profits with no compensation.” Communications Minister Anika Wells echoed this sentiment, adding: “We believe it’s only fair that large digital platforms contribute to the hard work that enriches their feeds and that drives their revenue.”
Reactions from the targeted tech firms align with past opposition to similar regulations globally. Meta pushed back against the proposal in a statement to Agence France-Presse, calling the new rules “nothing more than a digital services tax.” The company argued that news organizations voluntarily share content on its platforms to gain access to large audiences, adding that “the idea that we take their news content is simply wrong.” Google has also previously threatened to restrict access to its search engine in Australia if forced to implement mandatory compensation for news outlets, while Meta has already moved to end voluntary content deals with news publishers across the United States, United Kingdom, France and Germany in recent months. The 2021 debate over Australia’s original bargaining code saw Meta temporarily block all news content for Australian users, drawing widespread backlash.
The draft legislation is now open for public consultation, with the comment period set to close in May. Following the consultation phase, the bill will be amended and introduced to the Australian Parliament for a vote later this year. Supporters of the reform say it is a critical step to sustain independent local journalism, which serves as a cornerstone of Australian democratic discourse, while critics argue the levy unfairly targets tech companies and could lead to reduced service access for Australian consumers.