On 20 August the government’s news bargaining incentive (NBI) was passed into law.
It follows the collapse of the Morrison government’s previous news bargaining code. Under the code Google and Meta agreed to pay a fee for displaying news content on their platforms through commercial agreements with participating news organisations. The code worked effectively until the deals expired in 2024 and Meta withdrew, at a cost to news organisations of about $70m.
The incentive applies to Meta, Google, TikTok and LinkedIn, companies that have a significant social media or search service in Australia and local advertising revenue above $250 million.
The mandatory incentive will:
- Force tech giants to pay 2.5% of their advertising revenues in levies if they do not enter into commercial deals with at least eight different Australian publishers for news on their platforms.
- Give tech platforms a financial incentive to negotiate rather than pay because commercial deals with publishers will offset the levy.
- Provide an offset of 150% for spending with large publishers, while spending with small and medium-sized outlets carries a 200% offset.
- Distribute funds collected through the levy through a grants program for publishers and start-ups with an annual revenue below $150,000.
“The incentive will help ensure that publishers, including the ABC, are recompensed for the news they produce,” said ABC Friends National President, Cassandra Parkinson.
It’s important public recognition of the crucial role that factual news and information plays in our democracy.
The NBI was welcomed by major publishers and organisations including the Local and Independent News Association (LINA) and the Community Broadcasting Association of Australia.
The Executive Director of LINA, Claire Stutchbury, said:
Ensuring the sustainability and diversity of Australian newsrooms, big and small, is crucial for the health of democracy.
“It is vital that the stories that impact the places where we live and work are amplified. This is how we understand and navigate our own communities.
Claire said that LINA had argued successfully for amendments to support newsrooms more equitably across the media ecosystem and that it would continue to work with the government on further measures needed to support a growing local and independent media industry.
As with the previous news bargaining code, the ABC will enter into negotiations for commercial agreements with the tech companies.
There is more to do. We need legislation to protect and recompense creators for content that is accessed by AI companies. And in this highly concentrated media market, much more needs to be done to support news diversity.
But the NBI is an important and welcome first step.
A well-informed population is good news for Australian democracy.