Australia Toughens Media Law to Force Big Tech into More News Deals
New legislation increases required publisher agreements and introduces a revenue-based levy for non-compliant platforms.
The Australian government is introducing revamped media licensing laws to parliament to force large technology platforms to strike content deals with a broader array of local news outlets. The move signals a significant escalation in the ongoing struggle between sovereign governments and Big Tech over the monetization of digital news.
Under the updated legislation, the minimum number of required deals a platform must strike with Australian media companies has increased from six to eight. To ensure compliance, the government is introducing a financial penalty for platforms that fail to meet these requirements: a levy equal to 2.5% of their Australian advertising revenue. This levy is offset by the value of any agreements the platform has already successfully struck with publishers.
To prevent a single large agreement from satisfying the bulk of a platform's obligations, the law reinstates a cap that limits any single deal to 25% of a platform's total levy liability. Additionally, the scheme includes a specific mandate for the Australian Associated Press (AAP), requiring that 5% of all funds generated by the legislation be allocated directly to the news agency.
The collapse of the 2021 code
This legislative pivot is a direct response to the weakening of the original 2021 media bargaining code. While that initial framework compelled giants like Google and Meta to pay news publishers—often through government mediation—the system faltered after Meta announced it would stop paying for news content both in Australia and globally. The government is now seeking a more inclusive and enforceable mechanism to ensure that the financial burden of supporting journalism is shared across a wider range of platforms.
Implications for the media ecosystem
By expanding the requirements and implementing a revenue-based penalty, Australia aims to secure the financial sustainability of a more diverse media landscape. Communications Minister Anika Wells stated that these amendments were made to cater to small and diverse media companies, noting the increased number of news distribution channels now available to audiences. The goal is to protect not only major publishers but also smaller and non-profit organizations that are often sidelined in negotiations with tech giants.
What to watch
As the bill moves through parliament, the industry will be watching how the government defines the "large tech platforms" subject to these rules. While the intent is to expand the scope beyond the traditional Google and Meta duopoly to include other major distribution channels, the specific list of targeted firms remains a key point of interest. The effectiveness of the 2.5% levy will likely serve as a test case for other nations attempting to regulate the relationship between digital platforms and the news industry.