Australia has introduced draft legislation that would compel major technology companies to compensate local news publishers for their content or face a financial penalty, the government announced Tuesday.
Under the proposed laws, platforms including Meta, Google and TikTok would be required to reach payment agreements with Australian media outlets. Companies that fail to do so would face a levy equivalent to 2.25 percent of their Australian revenue, according to reporting by France 24.
Pressure on global platforms
The move represents one of the most direct attempts by a government to reshape the financial relationship between large technology platforms and the news industry. Australian authorities have framed the legislation as necessary to address the growing dominance of global tech companies at the expense of local journalism.
Media outlets across Australia, as in many other countries, have faced years of declining advertising revenue as digital platforms have captured an increasing share of the market. Supporters of the legislation argue that tech companies benefit significantly from news content shared and discovered through their services while contributing little to its production.
Precedent from earlier Australian law
Australia has previously pursued similar regulatory ground. The country passed the News Media Bargaining Code in 2021, which created a framework for negotiations between platforms and publishers. That legislation prompted Google and Meta to strike deals with several Australian news organizations, though Meta later indicated it would pull back from news content on its platforms.
The new draft laws appear to build on that foundation while introducing a more direct financial consequence for non-compliance. The levy mechanism is designed to create a strong incentive for platforms to negotiate rather than withdraw from agreements.
Industry response and next steps
The proposed legislation is expected to face scrutiny from the technology industry, which has historically pushed back against government efforts to mandate payments for news content. Platforms have argued in other jurisdictions that they drive significant traffic to publishers and that mandatory payments distort the market.
The draft laws will need to move through Australia's parliamentary process before taking effect. The government has not yet specified a timeline for passage or implementation.
Australia's approach has been closely watched by regulators in Europe and elsewhere who are grappling with similar questions about how to sustain local journalism in the digital age.
