Google, ByteDance, Meta Face Australian News Tax—Big Tech Responds

Key Takeaways

• The Australian government has proposed new rules to force platform operators to share revenue with the publishers of news content they host.
• Building on the established News Media Bargaining Code, the new framework would extend a revenue-sharing mandate to a greater range of platforms.
• Firms that fail to forge agreements with publishers could face tax penalties.

The Australian government is set to introduce new rules that would mandate companies like Google, Meta and ByteDance to compensate news outlets for the use of their content. 

The proposed “news bargaining initiative” would impact operators of search engines and social media platforms that generate more than $250 million of revenue in the country.

Australia’s News Bargaining Initiative

Announced by Australia’s Minister for Financial Services Stephen Jones, the latest proposal builds on the country’s pioneering News Media Bargaining Code. By charging an additional tax for platforms that host news content without paying publishers, the new framework will create a financial incentive for platform operators to enter into revenue-sharing agreements.

Introduced in 2021, the News Media Bargaining Code was designed to force Big Tech firms to share some of the advertising revenue they generate by hosting news content with those that produce it.

The reforms follow a review of the existing code, which found it to be effective but identified gaps in coverage and compliance. The proposed measures would extend the bargaining framework to a broader range of digital platforms, including ByteDance’s TikTok, which has become a key source of news for younger Australians. 

With the updated legislation, Australia aims to ensure that more platforms enter into fair commercial agreements with media outlets.

A Better Deal for Publishers

Since the introduction of the original News Media Bargaining Code, Australian media organizations have reportedly secured deals worth hundreds of millions of dollars. 

This financial injection has been vital for many outlets struggling to stay afloat in an era of declining print revenues and shifting advertising markets.

However, many smaller and regional publishers were left behind in the initial phase, as negotiations tended to favor larger organizations. The government’s new initiative seeks to address these concerns, creating a more inclusive system where even smaller media outlets can benefit from tech platforms’ reliance on their content.

By broadening the scope of the rules, the legislation also acknowledges the growing influence of TikTok, which has transformed how Australians consume news. 

Google and Meta Condemn Plans

The reaction to the proposed new framework from tech giants has been broadly critical. 

Google and Meta, which owns Facebook and Instagram, have expressed strong opposition to the proposed changes, arguing that news publishers already get a good deal from platforms, providing them crucial exposure. 

“The proposal fails to account for the realities of how our platforms work, specifically that most people don’t come to our platforms for news content and that news publishers voluntarily choose to post content on our platforms because they receive value from doing so,” a Meta spokesman said .

Meanwhile, Google said it had “continually demonstrated strong support for public interest journalism,” and had struck agreements with more than 80 Australian news companies representing 218 outlets.

The proposed new framework “risks the ongoing viability” of existing commercial deals with Australian news publishers, it added.