Google, Meta, and TikTok Under Threat to Pay for News Otherwise Face Penalty

Australia’s government recently declared plans for new rules that could cost companies like Meta, Google, and TikTok millions of dollars if they fail to compensate Australian media outlets for news content.

Assistant Treasurer and Minister for Financial Services, Stephen Jones, stated, “The news bargaining initiative will … create a financial incentive for agreement-making between digital platforms and news media businesses in Australia.”

According to credentials, the rules would apply to social media platforms and search engines with annual revenue in Australia over USD 250 million. Companies can lower these fees by voluntarily striking commercial deals with news publishers.

Tech firms are unhappy with the plan. A Meta spokesperson said, “The proposal fails to account for the realities of how our platforms work, specifically that most people don’t come to our platforms for news content and that news publishers voluntarily choose to post content on our platforms because they receive value from doing so.”

Meta has scaled back its focus on news worldwide, citing a shift in user interests. It has removed the News tab in several countries, including the UK, France, Germany, and plans to discontinue similar features in Australia and the US.

This move is part of a broader effort to hold tech giants accountable in Australia. Last month, the country became the first to ban social media use for children under 16, and Canberra is also planning heavy fines for platforms that fail to prevent online scams.

The current proposal builds on 2021 legislation that mandated platforms compensate news publishers for content. At the time, Meta briefly blocked users from sharing news links but later reached agreements with Australian media, including News Corporation and ABC. However, these deals will not be renewed after 2024.

News Corp Australia’s Executive Chairman, Michael Miller, stated, “I believe news publishers and the tech platforms should have relationships that benefit both parties on commercial and broader terms.” Miller added that he would approach Meta and TikTok to discuss possible agreements.