Technology giant Meta, the parent company of Facebook and Instagram, could be hit with multi-million dollar penalties for refusing to sign new content agreements with Australian news publishers under the country's media bargaining framework.
New Penalty System Targets Tech Giants
The Australian government, led by Assistant Treasurer Daniel Mulino, has unveiled detailed plans for a new media bargaining incentive that would impose significant financial penalties on large digital platforms that decline to negotiate content deals with news organisations. The rules will apply to social media and search companies generating at least $250 million in Australian revenue, regardless of whether they carry news content.
This development comes as Meta has steadfastly refused to sign new agreements under the existing Morrison-era news media bargaining code, while Google has voluntarily renewed some of its publisher partnerships, though at reduced payment rates.
Financial Stakes and Industry Impact
The existing bargaining code has secured approximately 30 content deals worth an estimated $200 million to $250 million annually for Australian publishers, including Guardian Australia and other major news brands. Former competition watchdog chair Rod Sims has estimated these commercial arrangements were worth as much as $1 billion over four years.
Under the proposed new system, platforms refusing to sign content deals would face penalties equivalent to either a percentage of their total Australian revenue or just their digital advertising revenue. Preliminary analysis suggests these penalties could reach 2.25% of revenue, designed specifically to encourage deal-making under the original code framework.
The timing is critical for Australia's media landscape, with major operators including News Corp, Nine and Seven West Media facing declining advertising revenues, staff redundancies and cost-cutting measures, while digital platforms continue to report substantial profits.
Political Considerations and Implementation Timeline
The Labor government has proceeded cautiously with designing the news bargaining incentive plan, partly due to concerns about potential retaliation from US President Donald Trump, who has previously threatened trade tariffs against countries he considers unfair to American companies. This concern is particularly relevant given Trump's association with billionaire adviser Elon Musk, who owns platform X.
However, the government is now moving forward with the penalty system following Prime Minister Anthony Albanese's successful White House meeting last month. The proposal will undergo a month-long public consultation ending 19 December, with a final approach expected to be settled sometime in 2026.
Treasury has recommended using total group revenue generated in Australia as the primary metric for calculating payments, and companies will be required to self-assess their liabilities under the new rules.
The government's discussion paper indicates that platforms could avoid the arrangements entirely by withdrawing news content from their Australian services, a strategy Meta previously employed in Canada during 2023.
