Australia is home to a thriving, if challenged, media landscape. Yet, the rise of digital platforms has strained local journalism.
As global tech giants profit from sharing news content, smaller media outlets have struggled to keep up. Now, Australia is stepping in with bold legislation to restore balance.
Starting January 2025, a new law will require major tech companies to pay for local news content. The legislation, announced by the Australian government, builds on an earlier 2021 measure.
This time, it removes any possibility for companies to avoid payments.
Tougher Rules for Big Tech
The law targets firms earning over 250 million Australian dollars annually. It includes Meta, Google, and TikTok.
These companies must negotiate financial agreements with media organizations or face significant penalties.
Stephen Jones, Australia’s assistant treasurer, defended the move.
“Digital platforms benefit financially in significant ways from Australia,” he said, and pointe out their responsibility to support local journalism.
Unlike the 2021 legislation, which allowed voluntary negotiations, this law leaves no room for opt-outs. Under the new rules, platforms that fail to strike deals will face higher taxes and tougher oversight.
Meta Pushes Back
Meta, the parent company of Facebook, has openly opposed the changes. After complying with the earlier law, the company recently ended its agreements with Australian media outlets.
A Meta spokesperson called the requirement unfair, stating, “It’s not right for one industry to subsidize another.”
The company has also announced plans to eliminate its news tab in Australia, arguing that news accounts for just 3% of user content.
This decision has dealt a financial blow to local media. Estimates suggest the Australian press lost around 200 million Australian dollars in revenue due to Meta's policy shift.
Despite Meta’s resistance, the Australian government is firm. Jones said the law ensures Australians can access quality news without burdening taxpayers.
The legislation is seen as a critical step in supporting journalism while addressing the power imbalance between tech giants and traditional media.
