Australia to make tech companies pay more outlets for content under reworked media law

Australia's government has revised its media licensing laws to compel major tech companies to contract with a larger number of local news outlets, the government announced on Thursday. The adjustments mandate digital platforms to establish agreements with a minimum of eight media companies, up from six in a prior version of the legislation.

These modifications also pledge to allocate 5 percent of the funds generated by the scheme to the Australian Associated Press (AAP), an entity that transitioned from an industry-owned wire service to a non-profit.

The government reestablished a cap that restricts each agreement to a maximum of 25 percent of a platform's levy liability. This levy is equal to 2.5 percent of a company's Australian advertising revenue, with the payment offset by the value of the deals established. Communications Minister Anika Wells stated that these adjustments aim to better support smaller and diverse media organizations by providing more equitable distribution of advertising revenue.

The legislation seeks to channel funds from large technology companies to Australian news organizations whose content fuels user engagement and advertising revenue on their platforms. People access news through various channels and sources, prompting the government to modify the distribution scheme accordingly. The Australian government's original 2021 media bargaining law required Google and Facebook, parent company Meta, to negotiate payment deals for news content, with an arbitrator appointed by the government to determine terms if negotiations faltered.

Despite the tech giants' opposition to charging license fees for media content, they reached several commercial agreements under this framework.

The revised plan extends its reach to platforms like TikTok and Microsoft's LinkedIn, in addition to the original targets. The government's redesign came after Meta announced its decision to cease paying for news content in Australia and other markets.