Australian PM Anthony Albanese is licensed under Creative Commons.
Australia’s Labor government has opened consultation on its “News Bargaining Incentive” (NBI), an escalation of its “News Media Bargaining Code” which forced American digital platforms to subsidize Australian media. This new proposal would raise the cost for U.S. businesses operating in Australia and reduce access to news for Australians.
Passed in 2021, the News Media Bargaining Code (NMBC) is a measure aimed to support local media by requiring digital platforms compensate media companies for displaying their articles. This forces companies like Google or Meta, who either display news in results or have news shared on their platforms, to enter commercial partnerships with Australian media companies. The Australian government reasoned that digital platforms were using Australian news without fair compensation. In reality, media companies often use digital platforms as a free form of online advertisement.
When the NMBC first passed, American companies engaged in commercial partnerships with local media partners in compliance with the law. However, in 2024 Meta announced it would not renew its contracts with local media, opting instead to scale back its news offerings. The NBI seems to be Labor’s answer to planned operational drawbacks in response to the NMBC, empowering Australian regulators to issue new fines on companies who refuse to enter partnerships regardless of whether a site carries news services.
The Australian government continues to consider the measure an “incentive” to enter “voluntary” deals. However, with fines reaching as high as 2.25% of revenue earned in Australia companies are being actively coerced into partnership with local media. What’s worse, the new NBI sets a minimum rate, “suggesting” digital platforms pay at least 1.5% of Australian revenue in their new commercial pacts.
The law mirrors a series of laws passed around the world that fall into the category of mandatory reinvestment, coercing American business to subsidize direct competitors. Countries such as France and Canada have implemented functionally similar content quota laws that require streaming services reinvest profits into local productions, while similar laws have gained popularity in Germany.
These laws, including the NBI proposal, act as a thinly veiled digital service tax, forcing American companies to divulge their profits. In turn, these profits are funneled to their competitors.
The Trump administration has continued to provide crucial leadership on addressing harmful foreign policies, but as countries continue to pursue such proposals, it is crucial that we continue to oppose discriminatory digital trade policies such as the NBI that seek to profit from the success of American business.