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Labor to force tech giants to keep paying media publishers for news

Announcement expected on Thursday after Facebook’s parent company Meta said it would opt out of a Morrison-era deal to pay for news

The Albanese government will introduce a new scheme to force big tech companies including Meta to continue paying media publishers for news.

This follows warnings from Meta, the parent company of Facebook and Instagram, that it would no longer pay Australian news companies for the content after deals the tech firm signed with media companies expired earlier this year.

It was expected the full details of the new approach – which could impose heavy penalties on tech companies refusing to negotiate deals with Australian news publishers and was first reported by the Nine newspapers and confirmed by Guardian Australia – would be announced on Thursday.

The Morrison-era news media bargaining code contains powers to force tech companies to deal with media companies in good faith or face fines of 10% of Australian revenue. No companies have been designated under the code as yet.

In 2021 Meta and Google entered multimillion-dollar voluntary commercial agreements for three years with media companies. While Google has voluntarily renewed agreements, Meta said it would not.

In deciding whether to designate a company under the code, the treasurer must consider whether there is a “significant bargaining power imbalance” between the platform and news companies as well as whether the platform has “made a significant contribution to the sustainability of the Australian news industry”.

But tech companies can avoid the existing arrangements by withdrawing news content entirely from their platform, as Meta did in Canada in 2023. Guardian Australia understands the new scheme will consider a tech company’s Australian revenue as a factor in the new rules.

The announcement comes after months of discussions between the Australian government and Meta after the company criticised the laws, saying “global tech companies cannot solve the longstanding issues facing the news industry”.

Guardian Australia understands consultations between the government and stakeholders on the proposed arrangements are ongoing.

The parliamentary joint select committee on social media and Australian society recommended in October the creation of a “digital platform levy” on companies such as Meta and Google – referred to by some as a “tech tax” – to fund public interest journalism.

The social media committee’s interim report focused on Meta, specifically criticising its decision not to renew deals and the “de-prioritisation of news” on its platforms. MPs also recommended establishing a short-term transition fund to help news media businesses to diversify.

The committee’s report stated that the code should not be abolished but “further measures may be needed” to fulfil the spirit of the code.

A spokesperson for Meta said the report’s recommendations “ignore the realities of how our platforms work, the preferences of the people who use them, and the value we provide news publishers who choose to post their content on our platforms”.

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