The Australian government has introduced new rules aimed at compelling tech and social media giants to compensate news outlets. These rules require social media giants to either negotiate payment deals with media outlets or pay a designated “charge” on their revenue. The News Bargaining Incentive is the latest addition to an industry code implemented in 2021 to encourage Big Tech companies to enter into payment agreements with major Australian outlets.
Initially, Meta, Google, and other tech companies struck deals with Australian news outlets like the Australian Broadcasting Corporation, News Corporation, and Nine Entertainment. However, Meta decided not to renew its agreements earlier this year, citing significant costs incurred across its platforms due to the existing legislation. The new Bargaining Incentive aims to compel Meta to contribute its share, which would be more costly than reaching agreements, with the funds directed towards public interest journalism.
The government clarified that platforms not engaging in or renewing agreements with news publishers would be subject to the charge, while those with agreements could offset their liability. The policy applies to large digital platforms operating significant social media or search services, regardless of whether they feature news content. Companies generating $250 million in Australian-based revenue, including Chinese-owned TikTok, will also be affected by the new rules.
Assistant Treasurer Stephen Jones emphasized the responsibility of digital platforms to support quality journalism, stressing the need for contributions to Australians’ access to news. The government aims to prevent platforms from circumventing their payment obligations and ensuring a sustainable news industry. The legislation excludes companies like Apple, Amazon, and Microsoft, as they do not meet the criteria for social media platforms.
The move follows recent laws passed by the Australian government requiring social media companies to implement measures to prevent under-16s from accessing their platforms within a year. Communications Minister Michelle Rowland emphasized the role of digital platforms in providing news access and supporting public interest journalism. The government clarified that it does not intend to profit from the revenue generated by the new rules.
The upcoming U.S. presidency of Donald Trump will also be a factor in the discussions surrounding these regulations. Trump has expressed concerns about heavy regulation of Big Tech firms and has been approached by industry leaders for assistance. The Digital Industry Group (DIGI), representing social media and tech companies in Australia, criticized the lack of consultation on the new rules, highlighting concerns about forcing one sector to subsidize another without proper input.
Overall, the government’s aim is to ensure fair compensation for news outlets from tech and social media giants while maintaining a sustainable news industry in Australia. Please rewrite the sentence for me.
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