Australia's New Rules Pressure Big Tech to Pay for News

Australia plans to introduce new regulations incentivizing big tech companies to pay local media firms for news content. This move targets major platforms like Facebook-owner Meta and Google, requiring them to make financial agreements with news outlets or face hefty charges.

Australia is set to enforce new regulations aimed at ensuring tech giants like Meta and Google compensate local media companies for news content on their platforms. Assistant Treasurer and Minister for Financial Services, Stephen Jones, announced the initiative on Thursday.

This 'news bargaining initiative' places substantial pressure on global tech entities to financially engage with Australian media if they wish to avoid operational costs soaring into millions. Jones highlighted that the measure creates a financial incentive for these agreements, emphasizing the importance of collaboration between digital platforms and news media.

Targeted at platforms generating revenues exceeding $250 million in Australia, the proposal allows charges to be waived if voluntary commercial agreements are established between the platforms and news businesses. A spokesperson from Meta expressed concern over the proposal, noting that users typically don't seek out news content on their platforms. Meta, which has existing agreements with companies like News Corp, has declared it will not renew them past 2024.

(With inputs from agencies.)