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Google shrinks media code deals by 40% as Labor weighs options on Meta

Search advertising giant Google is slashing the value and shortening the length of deals with Australian publishers struck under the government's media bargaining code.

John Buckley
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Google has already renewed deals with a string of smaller and independent publishers, however on far reduced terms. In some cases, Google has offered deals worth much less than three years ago. AP/Juliana Yamada.

Google has cut the value of deals offered to some publishers under the news media bargaining code by nearly half and is pushing to shorten the length of some agreements, sparking concerns the tech giant is set to follow Meta and retreat from the Australian news market.

The Alphabet-owned search advertising giant has offered multiple Australian digital publishers a 40% reduction in the dollar value of their deals during renegotiations, according to two people with direct knowledge of the situation who spoke on the condition of anonymity because the talks are confidential. Google has also pushed to shorten the length of what were previously multi-year agreements to just one year deals.

Google did not respond to multiple requests for comment for this story. The reduced terms were earlier reported by the Australian Financial Review.

The deals were initially struck in 2021 under the federal news media bargaining code. Google has already renewed agreements with several smaller and independent publishers including The Conversation and Women's Agenda. It also renewed a lucrative global agreement with News Corp.