News Bargaining Incentive Risks Further Concentrating Big Four’s Grip On Publishing: Man Of Many

Why It Matters

The proposals aim to prevent public funds from reinforcing media concentration and ensure levy money actually supports journalism jobs, preserving diversity in the Australian news ecosystem.

Key Takeaways

• NBI levy 2.25% targets Google, Meta, recapturing offshore ad revenue
• Four legacy publishers could claim up to 70% of new fund pool
• Man of Many proposes 10% cap and 30% SME floor for distribution
• AI search exemption removal would bring ChatGPT‑type services into scope
• Mandatory fund‑use reporting aims to ensure money reaches journalism salaries

Pulse Analysis

Google and Meta control about 81% of Australia’s digital ad market. To stop revenue leaving the country, the government introduced the News Bargaining Incentive (NBI), a 2.25% levy on platforms that do not strike a deal worth at least 1.5% of turnover. The levy is tax‑deductible and aims to fund Australian journalism, but its distribution mirrors the earlier News Media Bargaining Code, which directed AU$200 million (≈US$132 million) to four legacy publishers. Analysts fear the same concentration will recur, enriching ABC, News Corp Australia, Nine and Seven West Media while independent outlets stay under‑funded.

Man of Many’s submission outlines three structural fixes. First, it calls for the AI/LLM exemption to be removed, pulling services like ChatGPT, Claude and Perplexity into the levy because they already monetize Australian news content. Second, it proposes a 10% cap on any single recipient and a 30% floor reserved for publishers with less than AU$50 million (≈US$33 million) in revenue, ensuring a minimum share for the SME tier. Third, it mandates transparent reporting of how funds are spent—splitting allocations between journalist salaries, technology, audience development and capital costs—to prevent future buybacks and layoffs.

The proposed amendments could reshape Australia’s media financing by widening the pool to hundreds of independent outlets, fostering competition and local content diversity. A technology‑neutral definition would also future‑proof the regime against emerging AI search tools that already siphon traffic from news sites, a trend that has seen referral drops of 20‑60% in recent studies. If the government adopts the caps and reporting requirements, platforms may prefer negotiated deals with smaller publishers, leveraging the 170% SME offset, while the public gains clearer assurance that levy money supports newsroom jobs rather than corporate buybacks. Ultimately, the NBI could become a model for other jurisdictions seeking to balance platform power with a vibrant, pluralistic press.