The Australian government is set to mandate that tech giants, including Meta and Google, enter revenue-sharing agreements with local media firms or incur significant fines. New regulations will enforce penalties even if firms choose to eliminate news content, addressing previous shortcomings in the existing media bargaining code.
The Australian federal government plans to implement measures compelling major technology companies, including Meta, TikTok, and Google, to engage in revenue-sharing arrangements with local media entities. Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland announced that these firms will face substantial financial penalties if they fail to negotiate with Australian news companies. Notably, these charges will remain applicable even if the platforms exclude news content from their platforms entirely, addressing a recognized loophole in prior regulations. Under the revised News Media Bargaining Code, a new News Bargaining Incentive will encourage platforms to formalize agreements with publishers, while those opting out will incur set charges. This initiative is targeted at firms generating at least $250 million in Australian-sourced revenue.
The context of this article pertains to ongoing efforts by the Australian government to ensure that large tech companies compensate local media for content usage. Initiated under the previous Morrison administration in 2021, the original News Media Bargaining Code was designed to enforce negotiations between tech platforms and media companies through arbitration. However, concerns arose regarding the lack of penalties for platforms that wholly remove news content, leading to the proposed enhancements aimed at reinforcing responsibility among digital firms. Furthermore, the Australian government has recently enacted further measures aimed at regulating the influence of social media and online safety, indicating a broader strategy to manage digital platforms responsibly.
In summary, the Australian government’s proposed revisions to the News Media Bargaining Code aim to enforce financial accountability among tech giants concerning the utilization of local news content. By compelling negotiation for revenue-sharing deals and imposing penalties for non-compliance, the initiative seeks to bolster media funding amidst a dynamic digital landscape. The government’s firm stance signals an intention to address systemic issues within the media ecosystem, fostering a more sustainable relationship between traditional news outlets and major technology firms.
Original Source: ia.acs.org.au
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