Making Tech Giants Pay for News Was a Success the First Time Around. It Can Be Done Again

Key Takeaways

• $1 billion paid to Australian media over five years under the code.
• Google kept deals; Meta stopped after three‑year contracts expired.
• New incentive imposes a charge 50% above expected deal value.
• No arbitration; platforms can meet minimum of four media deals only.
• Australia again leads global effort to force tech firms to fund journalism.

Pulse Analysis

The 2021 News Media Bargaining Code marked a watershed for Australia, forcing Google and Meta to negotiate payments for the news content that fuels their search and social feeds. Over five years the regime generated more than $1 billion for Australian publishers, with Google contributing roughly 70 % of that sum. Smaller outlets even secured higher per‑journalist payments than some national titles, demonstrating that a regulated access model can rebalance power between platforms and newsrooms. The code proved that compulsory bargaining, backed by arbitration, can convert a market failure into a revenue stream for democratic journalism.

However, the experiment also exposed structural weaknesses. Meta’s three‑year agreements lapsed in 2024 and the company withdrew from further negotiations, echoing its earlier decision to strip news from Facebook in Canada. Without a binding arbitration clause, platforms can simply walk away, leaving publishers vulnerable once contracts end. The episode highlighted the need for a mechanism that compels ongoing contributions regardless of a platform’s editorial stance on news, and it spurred the government to design a follow‑up instrument that does not rely on designation.

The newly proposed News Bargaining Incentive expands the reach of the original code to any platform, even those that choose not to carry news. Instead of mandatory deals with every publisher, the incentive sets a baseline payment—50 % higher than the value of anticipated agreements—if a platform fails to strike a minimum of four deals. While this simplifies compliance, it raises concerns about equity and the potential for a “pay‑or‑penalty” model that could disadvantage smaller outlets. If calibrated correctly, the incentive could cement Australia’s role as a global template for extracting value from tech giants to sustain quality journalism.