News Corp Criticizes Revised Tech Giants Pay Plan
· news
News Corp Attacks ‘Gutted’ Plan to Make Tech Giants Pay for News
The revised News Bargaining Code has sparked criticism from publishers, including News Corp and Nine Entertainment. While the government claims these changes strengthen the policy, many argue they do the opposite – watering down the incentive for tech giants to pay for journalism.
At its core, the News Bargaining Code aims to address the issue of tech platforms profiting off news content without fairly compensating publishers. The initial code failed to yield significant results, so the government is trying again with a few concessions that have left many in the industry perplexed.
The most notable change shifts the focus from charging tech giants based on their total Australian revenue to digital advertising revenue only. This tweak reduces the financial burden on these platforms and increases the rate from 2.25% to 2.5%. However, former ACCC chair Rod Sims argues that this increase might not be enough to compensate for the loss in revenue scope.
The removal of the carve-out for professional networking services like LinkedIn has been welcomed by some but seen as a way for the government to sidestep the issue altogether. The fact remains that these platforms profit from news content without paying their fair share.
Publishers argue that tech giants are taking advantage of their news content to drive engagement and ad revenue. Google has signed deals with over 90 news businesses, while Meta walked away in 2024, citing the incentive as a discriminatory tax. It’s unclear whether the revised policy will be enough to persuade other platforms to follow suit.
The new requirement for tech platforms to strike deals with at least six publishers may seem like a reasonable compromise but is unclear how it will affect smaller and regional news outlets. Fewer than 100 businesses are currently on the government’s register, leaving many in the industry feeling left behind.
The bill is expected to hit parliament soon, and its impact will be felt far beyond Australia’s borders as the global digital advertising market continues to shift. Policymakers must get it right, with the future of journalism hanging precariously in the balance.
The government’s arithmetic may suggest that the revised policy will yield more revenue for publishers, but Sims’ skepticism is well-founded. The real test will be how these changes translate into actual results on the ground. Will tech giants finally start paying their fair share, or will they find new ways to dodge the system? Only time will tell.
The status quo is no longer tenable as global platforms grow in influence and the market continues to evolve. Australia has an opportunity to set a precedent for fairness and transparency in the digital age – but with this latest fumble, it’s anyone’s guess whether they’ll seize it.
Reader Views
- ADAnalyst D. Park · policy analyst
The revised News Bargaining Code is a watered-down attempt to hold tech giants accountable for profiting off news content without fair compensation. While the shift in focus from total revenue to digital advertising revenue may seem like a minor tweak, it effectively reduces the financial burden on these platforms. What's more concerning is that this change may incentivize tech giants to invest more in advertising, further increasing their profit margins at the expense of struggling publishers. A closer look at the government's concessions reveals a lack of concrete measures to address the core issue: tech platforms' blatant disregard for journalistic labor and output.
- EKEditor K. Wells · editor
The revised News Bargaining Code is a half-measure that still doesn't address the fundamental issue: tech giants profiting off news content without paying their fair share. The shift from total revenue to digital advertising revenue only is a clever accounting trick that waters down the incentive for these platforms to strike deals with publishers. Moreover, the requirement for at least six publisher deals is an unclear and potentially unenforceable provision that may not yield any tangible benefits for small or independent outlets struggling to survive in this ecosystem.
- CSCorrespondent S. Tan · field correspondent
The revised News Bargaining Code is a half-measure that fails to address the core issue: tech giants profiting from news content without fair compensation. By capping the revenue scope at digital advertising only, the government has effectively watered down the incentives for these platforms to pay up. What's more, this concession may inadvertently create a perverse incentive for smaller publishers to prioritize ad revenue over quality journalism. As it stands, this revised code remains little more than a feeble attempt to regulate the tech giants' dominance.