News Corp slams 'gutted' Australian news bargaining plan
The media giant argues that narrowing the tax base for tech platforms undermines the incentive for fair journalism payments.
News Corp has strongly condemned the Australian government's revised News Bargaining Incentive, claiming the updated policy weakens the pressure on tech giants to pay for local journalism. The company argues that the changes effectively "gut" the mechanism designed to compel global platforms to strike fair commercial deals with media outlets.
Under the revised plan, the government has narrowed the levy's charge base, shifting it from total Australian revenue to digital advertising revenue alone. While the levy rate for platforms that fail to reach agreements has increased from 2.25% to 2.5%, the reduced base is the primary point of contention. The incentive applies to companies with a significant search or social media presence in Australia and local revenue exceeding A$250 million. Additionally, the government removed the carve-out for professional networking services, bringing LinkedIn into the scope of the policy, and increased the number of publishers platforms must strike deals with from four to six.
The struggle for sustainable funding
This policy arrives as a response to the perceived failure of the 2021 news media bargaining code. While Google previously entered agreements under that framework, Meta walked away in 2024. The previous system lacked the necessary mechanisms to prevent such exits, leaving Australian publishers vulnerable to the whims of global platforms. The new incentive aims to create a more sustainable funding model by penalizing platforms that refuse to negotiate, ensuring that the value of news content is recognized and compensated.
Industry implications
Industry leaders argue that limiting the tax to advertising revenue ignores other massive revenue streams utilized by tech giants, potentially reducing the financial pressure on them to pay market value for news. Michael Miller, News Corp Australasia executive chairman, stated that the changes "gut the incentive for tech platforms to strike fair deals with Australian media, right when those rules need strengthening, not softening." Matt Stanton, CEO of Nine Entertainment, echoed these concerns, noting that the late-stage changes require closer scrutiny to ensure the policy still compels platforms to negotiate fairly for the journalism they benefit from.
Future outlook
Despite the criticism from publishers, the government maintains that the revised structure remains a powerful deterrent. Assistant Treasurer Daniel Mulino asserted that under the new rules, platforms will end up paying substantially more if they refuse to enter into commercial agreements. Observers will now watch to see if the inclusion of LinkedIn and the higher publisher quota are enough to bring recalcitrant platforms back to the negotiating table or if the narrowed revenue base will lead to a further decline in funding for local news outlets.