SYDNEY (Reuters) – Australia’s government said on Thursday it planned new rules that would charge big tech firms millions of dollars if they did not pay Australian media companies for news hosted on their platforms.
The move piles pressure on global tech giants such as Facebook-owner Meta Platforms and Alphabet’s Google to pay publishers for content or face the risk of paying millions to continue operations in Australia.
“The news bargaining initiative will … will create a financial incentive for agreement-making between digital platforms and news media businesses in Australia,” Assistant Treasurer and Minister for Financial Services Stephen Jones told a press conference.
The platforms at risk will be significant social media platforms and search engines with an Australian-based revenue in excess of $250 million, he said.
The charge will be offset for any commercial agreements that are voluntarily entered into between the platforms and news media businesses, Jones added.
Tech companies condemned the plan.
In 2021, Australia passed laws to make the U.S. tech giants, such as Google and Meta, compensate media companies for the links that lure readers and advertising revenue.
After the move Meta briefly blocked users from reposting news articles, but later struck deals with several Australian media firms. It has said since it will not renew those arrangements beyond 2024.
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