Australia passes law to make big tech pay for news

Australia has passed a law that requires large technology companies to pay local news organizations for using news content. The News Bargaining Incentive law, set to take effect, targets digital platforms that generate significant advertising revenue in Australia.

Under the law, companies must either enter into commercial agreements with Australian news publishers or pay a levy equivalent to at least 2.5% of their local advertising revenue. The legislation applies to firms with local advertising revenues exceeding A$250 million that operate significant social media or search services. Meta, Google, TikTok, and Microsoft's LinkedIn are within the scope of the law.

Platforms can reduce or eliminate the levy by striking deals with at least eight publishers. These agreements must be finalized before the end of each company's financial reporting period. Payments to large publishers will result in a 150% offset of the levy, while payments to small and medium-sized publishers will receive a 200% offset.

The law builds upon Australia's earlier News Media Bargaining Code, which sought to address imbalances between publishers and platforms. Although Google and Meta previously signed deals, Meta has since reduced the availability of news on its services. This new framework aims to ensure platforms contribute financially to the news sector.