The Australian government has introduced a bill requiring major IT companies to pay for using news content. The thresholds are domestic revenue of at least A$250 million and a specified number of monthly users; a levy will be imposed if no contract is negotiated.
The government has announced plans to submit legislation during the August session to address the free display of news articles and effectively mandate payments by major IT companies to news organizations. The law would cover companies whose domestic revenue exceeds a certain threshold and that meet a specified user threshold for social media or search engines, with Google, Meta, TikTok and LinkedIn among those expected to be covered.
Under the new law, if a major IT company does not enter into a commercial agreement with a news organization concerning the use of news content, it would be subject to a levy of approximately 2.5% of its domestic digital advertising revenue. The amount would then be redistributed to news organizations.
The amount distributed would generally be calculated based on the number of editorial staff, with additional allocations planned for news organizations that deliver news to minorities, including people in regional areas and Indigenous communities. According to government estimates, total payments by major IT companies would be approximately A$250 million if agreements are concluded, and approximately A$350 million if the levy is applied.
In the past, loopholes in the law’s application had been identified, and the new legislation has been revised so that applicability is determined by company size. Major IT companies have expressed opposition, while industry groups and others have criticized the burden on foreign companies.
The government has emphasized its intention to set precedents in copyright protection and the use of AI, and the proposal has been reported as part of a policy framework designed to secure payments for news organizations.