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‘Meta has demonstrated its utter contempt for the Australian government, its people and its laws’: War of words as govt floats tech levy

A Labour-led committee has found that the bargaining code introduced in 2021 to force tech giants to pay Australian newsrooms for the use of its content is “broken” and has proposed an alternative levy system.

The committee, chaired by Newcastle Labor MP Sharon Claydon, found that Meta’s decision in March to discontinue millions in payments to Australian news publishers was proof the news bargaining code “is broken and should be replaced with alternative revenue mechanisms, such as a levy system, on the broader operations of the digital platforms”.

The report recommended that any “digital platform levy” introduced should include “consideration for preserving current and future commercial deals to sustain public interest journalism over the longer term, and to support digital media literacy initiatives”.

The committee made a number of other recommendations, including the establishment of a fund to support public interest journalism from under-resourced publications.

“Given Meta’s decision not to renew deals under the news media bargaining code, and the de-prioritisation of news on Meta platforms, the committee recommends that the Australian government establish a short-term transition fund to help news media businesses to diversify and strengthen alternative income streams and news product offerings,” the report reads.

The report also suggests digital platforms be put in place to share algorithms and data collection for research purposes, but it was the proposal of a levy that attracted the ire of Meta.

“The committee’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,” a Meta spokeswoman said.

Four coalition members of the committee were also unimpressed with the findings.

“The future of Australian journalism and the very fabric of Australian democracy is at stake due to the weak leadership of the Albanese government,” a collective led by senators Sarah Henderson and Jacinta Nampijinpa Price said.

“Under the Coalition, Meta paid for news. Under this Albanese government, Meta has demonstrated its utter contempt for the Australian government, its people and its laws – and has gotten away with it.”

They argued “the news media bargaining code was designed to give government powerful tools to hold social media companies to account for the commercial benefits they gain from use of Australian news content”, claiming: “The Albanese government has been weak in its handling of this issue.”

Committee chair Sharon Claydon said the report “highlights the urgent need for robust regulatory frameworks to protect Australians from the harmful effects of social media”.

Greens communications spokesperson and deputy committee chair, Senator Sarah Hanson-Young said regulations were the only way to protect Australians from international tech companies.

“The potential for Meta to remove news from their platforms will create a void for mis- and dis-information, while in turn their refusal to pay for the news it carries will impact Australian jobs and the quality of public interest journalism in Australia,” she said.

“Tech platforms must be held responsible for creating the very spaces that drive division, abuse and conspiracy theories.”

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