Trump tariffs threaten Australian news bargaining agreements
Plans to force tech giants to pay Australian news outlets for their content have been put into jeopardy, after President Donald Trump ushered in “reciprocal tariffs” for taxes placed on US goods.
The Albanese government has reportedly stalled plans to begin publicly designing its news bargaining incentive, with the Sydney Morning Herald reporting that “two Australian officials” confirmed the delay is due to fears of inciting payback tariffs.
The news bargaining incentive was set to back up the News Media Bargaining Code by forcing digital platforms to strike commercial deals with Australian news publishers or pay a levy.
The proposed incentive was aimed at all digital platforms operating “significant social media or search services, irrespective of whether or not they carry news”. That final caveat is a pointed reference to Meta’s threats to remove all news from its services, which it did for a short period when the News Media Bargaining Code was introduced in 2021.
Under the incentive, platforms that choose not to enter into commercial agreements with news publishers will be hit with the fees, with those who come to the table able to “offset their liability”.
The SMH reports that ambassador to the US, Kevin Rudd, is playing “a central role in calming the US” about the news code, as well as advising Australian ministers on the path forward.
Google previously cautioned the “introduction of a targeted tax risks the ongoing viability of commercial deals with news publishers in Australia”, while Meta has stuck to the same argument it made in March when it decided not to renew deals made with Australian outlets under the News Media Bargaining Code. It says people don’t come to its platforms to read the news.
“The truth is that interest in news is declining on our platforms and that our audiences are engaging with different types of content,” Meta said, saying that links to news stories make up less than 3% of the content people see in their Facebook feed.
“Forcing technology companies into commercial relationships will not solve the long-term challenges facing public interest journalism or encourage the news industry to develop sustainable business models.”
Last week, Communications Minister Michelle Rowland denied the proposed framework was a targeted tax, saying, “the government has made it very clear that this is not targeted at any specific country. This is important for ensuring that Australian publishers are properly recompensed for the work that they undertake. That principle remains true.”
A government spokesperson told Nine it is “continuing to work constructively with stakeholders on the news bargaining incentive”.
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Nathan Jolly is the Features Editor at Mumbrella. He joined the team in July, 2023.
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I was just thinking the other day how media mentions of the News Bargaining Code have dropped off a cliff since the election result.
Makes sense, with Sundar Pichai and Mark Zuckerberg sitting prominently in President Trump and Elon Musk’s inner circle of oligarchs and making sweeping changes to their DEI and fact checking policies, even bowing to insane requests like changing the name of the Gulf of Mexico their platforms. With this in mind, the Australian government probably isn’t going to risk drawing attention to themselves by following through.
Also factor in that it’s an election year. Dutton can’t press the issue, because his party introduced the code at the request of their mates Murdoch and Stokes and Albanese won’t push it because he’s trying to smooth out our trade relations, now that the US is throwing it’s weight around like a clumsy bully.
I’d say the the code is effectively dead and buried for the time being. Sorry Rupert…
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Can someone please explain how they have managed NOT to pay tax in our country, including News corp?
No one seems to care. Except for the everyday PAYE taxpayer , the entire tax system appears is wracked by corruption and self-interest,
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