Australia is preparing a new levy on major digital platforms in a fresh attempt to make companies such as Google and Meta pay for journalism, sharpening a global fight over who funds news in the platform era. Prime Minister Anthony Albanese said the government is “taking the next steps to ensure Australian journalism is sustainable now and into the future,” according to Reuters, framing the proposal as a direct response to the financial strain on local publishers.
Communications Minister Michelle Rowland said the draft framework would impose a lower charge on platforms that strike commercial agreements with publishers and a higher one on those that do not, in comments reported by Reuters. She said a platform with a deal would contribute 1.5% of its Australian-generated revenue, while “in the absence of a deal, the contribution rises to 2.25 per cent,” a structure designed to push companies toward negotiated payments rather than a straight tax.
The proposal revives a battle that first put Australia at the center of the global debate in 2021, when the country introduced its landmark News Media Bargaining Code. Reuters and prior official statements from the Australian Competition and Consumer Commission have said the earlier regime aimed to correct bargaining imbalances between publishers and dominant platforms, after regulators concluded that digital advertising concentration had weakened the business model for news producers.
Google signaled it intends to engage, but not without resistance. In a statement cited by Bloomberg, Sundar Pichai said the company is “committed to working constructively with Australian publishers and will continue to invest in the ecosystem.” The company also argued, according to Bloomberg, that the proposed percentages go beyond what it views as a reasonable share of the value created by news content, underscoring the central dispute over how much journalism truly contributes to search and platform traffic.
Meta, which has already pulled back from paying for news in several markets, struck a more cautious tone. Mark Zuckerberg said the company “recognises the importance of quality journalism” but expects “any framework to reflect the actual contribution of news content to our services,” according to the Financial Times. That position matters because Meta has previously argued that publishers benefit more from distribution on its platforms than the company benefits from carrying news, a claim that regulators in multiple countries have challenged.
The economic backdrop gives Canberra political cover to press ahead. The ACCC said in its digital platform services inquiry that Google and Meta hold substantial power in online advertising, and reporting cited in the source material said the two companies account for roughly 80% of Australia’s digital ad market. An ACCC spokesperson, quoted by CNN Business in the source material, said the “disproportionate share means the platforms extract significant value from news content without direct compensation,” a view that aligns with long-running complaints from publishers.
Media groups welcomed the move as overdue support for a sector facing shrinking ad revenue and newsroom cuts. Mark Allen, chief executive of the Australian Media Association, said, “For years Australian newsrooms have been forced to operate on the back of free platforms. This code finally puts a price on that privilege,” according to Reuters. He added that the levy could raise as much as A$500 million a year for local outlets, though that figure remains an industry estimate rather than a government forecast.
The legal and policy setting also looks firmer than it did during the first round of clashes. Constitutional law professor Anne Twomey said the High Court’s dismissal of a challenge to the 2021 code “affirmed Parliament’s power to regulate digital platforms in the public interest,” according to the Australian Financial Review as cited in the source material. That legal backdrop reduces the odds that a broad constitutional attack could derail the new regime, even if the companies contest its design or implementation.
Australia’s move also fits a wider international pattern. The source material cited Canada’s Online News Act and the European Union’s digital rules as examples of governments trying to force a transfer of value from platforms to publishers. Reuters reported that European officials have argued the bloc is setting a standard for fairer treatment of journalism, and policymakers in other markets continue to watch whether these systems produce durable newsroom funding or simply prompt platforms to limit news distribution.
The draft legislation is expected to go to parliament in the coming weeks, with compliance targeted for early 2025, according to Reuters. Albanese said the government will “monitor implementation closely and adjust the framework if it does not deliver sustainable revenue for our news sector,” a signal that the measure could evolve if negotiations stall or platform behavior changes. For investors, publishers and regulators across Asia-Pacific, the next test is whether Google and Meta cut deals quickly or force another high-stakes confrontation over the commercial value of news.
JBizNews Asia Desk
