Australia's New Media Bargaining Plan: Tech Giants vs News Outlets

0:00Australia's labor government just dropped a new media bargaining incentive plan to make big tech pay up for local news. The idea is simple, slap a levy of up to 2.25% on Australian revenue from major digital platforms unless they cut deals with news. Outlets Prime Minister Anthony Albany says it's about closing loopholes so platforms can't dodge paying for journalism they profit from. Platforms can wipe out the tax entirely by striking agreements with at least four media groups, deducting 150% of those deals, values, or even 170% for smaller outlets. The government expects this to rake in between $200 million and $250 million a year, all funneled straight to newsrooms, based on journalist head counts. Tech giants are firing back hard. Metacalls it a government mandated wealth transfer with no link to actual value since news or exposed voluntarily. Google, despite its own deals with over 90 news businesses, questions the tax as unnecessary

1:01and slams exclusions for players like Microsoft, Snapchat, and OpenAI. Media companies are cheering it on as a critical step to keep journalism alive, with groups like ABC, newscorp, and nine saying platforms must pay, for content that fuels their feeds. The original code's architect, Rod Sims, praises the balance but worries smaller outlets might miss out on direct deals. One kicks off soon, with heavy lobbying expected from both sides on carve outs and AI inclusion. This could reshape how tech and news share the digital pie down under, pushing platforms to negotiate or pay the price. That wraps Adelaide News today brought to you with AI. I'm Corey with The Story.