Labor’s second run at forcing tech giants to pay for news could face legal challenges
Australia's second attempt to force tech giants to pay for news might just work, observers say, but there are also risks.
Federal Labor’s decision to revamp the news media bargaining code and charge tech companies including Meta, Google and TikTok if they don’t strike deals with news publishers looks more sustainable than the scheme that preceded it, but may also be challenged in the courts.
That's the view of legal experts in the wake of Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland's unveiling of the new scheme, dubbed the the “news media bargaining incentive” on Thursday.
Under the new scheme, certain tech giants with annual local revenue above $250 million will face a new charge if they do not strike commercial deals with news publishers. If they do strike deals the overall cost will be reduced via an offset mechanism.
“I think it’s quite smart politically. It might actually work,” Marque Lawyers managing partner Michael Bradley told Capital Brief.
