‘Critical step’: Australian media outlets welcome media bargaining changes
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More news: The heads of major Australian news outlets have welcomed the government’s proposed changes to the media bargaining code, which they frame as a “critical step” towards securing the industry’s future.
In a joint statement, eight leaders of major media companies warned the “robust and open exchange of news” was under threat, and the industry was “unsustainable” unless social media giants paid for their output.
“It has been more than two years since Meta walked away from previous deals,” the statement said.
“While Google has been positive about doing deals, others need to come to the table, and all platforms need to step up.”
Signatories included ABC managing director Hugh Marks, Australian Community Media managing director Tony Kendall and News Corp Australasia chief executive Michael Miller.
What they said: “If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable,” the statement said.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians.”
Tech giants to face fees for ditching Australian news under bargaining code revamp
The news: Tech giants will be charged if they walk away from the Australian news market, under an Albanese government revamp of the social media bargaining code.
The context: The government released a consultation paper on the proposed changes on Tuesday, confirming major platforms would incur greater fees if they refused to strike deals with local media organisations.
It came after Meta, the owner of Facebook and Instagram, decided to drop Australian news content from its platforms in 2024, rather than renew a $70 million per year deal with news media organisations.
The government said its proposed changes would address a “limitation” in the original news bargaining code, which it said allowed “digital platforms to avoid their obligations by removing news from their service”.
The media bargaining code is designed to incentivise tech giants to strike deals with Australian media organisations, though Communications Minister Anika Wells warned it was no longer fit for purpose.
“We all know most Australians are now consuming content online,” Wells told reporters on Tuesday.
“People are increasingly getting their news directly from Facebook, from Tiktok, and from Google. We believe it’s only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue.”
Under Labor’s changes, a platform which opts not to strike deals will be charged as a proportion of their revenue, money which will be distributed to news organisations.
The charge is set at 2.25% of revenue, which will be downgraded to 1.5% if the platform strikes a deal. The offset will be extended to slightly if that deal is with a smaller news outlet.
“[That is] is a reflection of the importance of diversity in the media,” Assistant Treasurer Daniel Mulino said.
AI platforms — like Google’s Gemini Ai and OpenAI’s ChatGPT — have not been folded into the legislation.
Mulino stressed the government’s approach to AI was being examined in a range of other settings, including copyright laws being spearheaded by Attorney-General Michelle Rowland.
“It’s considered that that’s a more appropriate forum to deal with some of the issues,” Mulino said.
Submissions to provide feedback on the proposed changes will end on 18 May.
What they said: “The news bargaining code is no longer working effectively. We are fixing it,” Wells said on Tuesday.
The sources: Albanese government statement, Anthony Albanese, Anika Wells and Daniel Mulino press conference, Media outlets statement
