Credit: Pawel Czerwinski via Unsplash
Google is seeking to change a multi-million dollar deal, negotiated by Andrew Twiggy Forrest’s Mindaroo Foundation, with a group of small Australian news publishers.
The Public Interest Publishers Alliance closed a five-year deal with Google in 2022 for funding for its members. Commercial terms are confidential and haven’t been revealed.
However, Google now says it wants to stop paying each publisher separately and enlist the help of a third party to run the scheme.
This is done on the grounds that publishers have indicated that significant resources were needed to apply for the funding each year, insiders told AdNews.
Insiders say the letter sent by Google was a “notice of non-renewal” of the Google News Initiative Project Agreement.
“Feedback received from publishers indicates that the program required significant team resources to complete required submissions, reports and financial processes,” the Google letter said, according to insiders.
“ … we will be discontinuing individual publisher agreements negotiated through the Minderoo Foundation.”
Google's had a deal with 24 Australian publishers, such as Australian Rural and Regional News, The Australian Jewish News, The Greek Herald, Indian Link, Australian Chinese Daily and Star Observer.
Shadow minister for communications Melissa McIntosh said the government’s inability to get the News Media Bargaining Code renewals with tech giants for more than a year could cost publications millions and potentially see them close.
“The code was meant to be world-leading competition policy; however, it is caught in the US tariff dispute and Labor’s slow approach is harming Australian media outlets,” she said.
“The Australian media industry is still waiting on the government to release details on the ‘news bargaining incentive’ announced in December, which would encourage platforms to enter or renew commercial deals.
“Google must recognise the dramatic impact the early ending of its contract is going to have on local and interest-based publications across Australia.
“It is right to question why Google is not continuing its contract with Public Interest Publishers Alliance publications through till its completion at the end of 2027. These publications were relying on the contracted funding to maintain quality journalism and staff.
“Australia needs to continue to have quality local and interest-based publications to tell the stories of multicultural communities, businesses and regions.”
The News Media Bargaining Code was introduced by the Morrison government in 2021 to address the power imbalance between digital platforms and publishers.
Meta and Google chose to negotiate deals before the code was enacted, agreeing to pay Australian publishers more than $200 million a year for their content over the three years to 2024.
Last year, Meta announced it would not renew deals. Google signed multi-year commercial deals, but has made some of them yearly agreements that roll over.
AdNews contacted Google for comment.
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