Australia plans charges for big tech over unpaid news content

Posted by Admin December 12, 2024 Tech

The new rules are part of Australia’s tougher stance on mostly US-domiciled tech giants. Credit: Billy Joachim on Unsplash.

Australia has announced plans to implement new rules that would charge big tech companies millions of dollars if they fail to pay Australian media companies for news content hosted on their platforms.

This move targets global tech giants such as Meta Platforms and Alphabet’s Google, urging them to pay publishers or face significant financial penalties, reported Reuters.

Assistant Treasurer and Minister for Financial Services Stephen Jones stated, “The news bargaining initiative will create a financial incentive for agreement-making between digital platforms and news media businesses in Australia.”

The rules will apply to significant social media platforms and search engines with Australian-based revenue exceeding $250m (A$390m).

Jones mentioned that any commercial agreements voluntarily entered into between the platforms and news media businesses would offset the charge.

However, tech companies have criticised the plan.

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A Meta spokesman said, “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.”

A Google spokesperson expressed concerns, stating the government’s decision “risks ongoing viability of commercial deals with news publishers in Australia.”

The new rules are part of Australia’s tougher stance on mostly US-domiciled tech giants.

In November 2024, Australia became the first country to ban children under 16 from social media.

Australia also plans to impose fines on companies failing to eliminate scams.

Google, ByteDance through TikTok, and Meta would fall within the scope of the new charges, while X, formerly Twitter, would not be covered, according to Jones.

In 2021, Australia passed laws requiring US tech giants to compensate media companies for links that attract readers and advertising revenue.

Following the 2021 legislation, Meta briefly blocked users from reposting news articles but later struck deals with several Australian media firms.

Meta has since announced it will not renew these arrangements beyond 2024. The company has been reducing its promotion of news and political content globally and discontinued the news tab on Facebook in Australia and the US.

In 2023, Meta blocked users in Canada from reposting news content after similar government action.

Australian news organisations are expected to benefit from the new rules.

News Corp Australia executive chairman Michael Miller plans to contact Meta and TikTok to seek a commercial relationship, stating, “I believe news publishers and the tech platforms should have relationships that benefit both parties.”