Google and Meta have rejected the federal government's draft News Bargaining Incentive (NBI) legislation, which was released for public consultation this week following its initial proposal in late 2024.
The legislation seeks to close a gap in the existing News Media Bargaining Code, which has allowed digital platforms to sidestep payments to news publishers by simply removing news content from their services.
Under the NBI, platforms would be encouraged to strike commercial deals with eligible news publishers, with offsets available to reduce liabilities.
Platforms with Australian revenue exceeding $250 million that choose not to partner with news outlets would face a charge of 2.25% on that revenue, with funds redistributed to the news media sector.
Australia's major news organisations such as ABC, Nine, News Corp, ACM, Network Ten, The Guardian, SCA/Seven and SBS, signed a joint statement backing the legislation, describing it as critical to Australian democracy.
"The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions. This is under threat," the statement read.
Google and Meta have rejected such framing.
"While we are currently reviewing the draft legislation, we have been clear: we reject the need for this tax," said a spokesperson from Google.
“It ignores the fact that Google already has commercial agreements with the news industry, misunderstands how the ad market changed and mandates payments from some companies while arbitrarily excluding platforms like Microsoft, Snapchat and OpenAI."
Meta also rejected the characterisation that it profits from news content at publishers' expense.
"News organisations voluntarily post content on our platforms because they receive value from doing so," said a spokesperson at Meta.
"This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax. A government-mandated transfer of wealth from one industry to another, with no connection to the value exchanged."
Meta also took aim at the joint statement issued by Australia's news organisations, arguing the NBI would "not deliver a sustainable or innovative news sector" and would instead produce "a news industry dependent on a government-administered subsidy scheme".
The exposure draft has also drawn criticism for exempting several major technology companies. including Microsoft, Snapchat, Amazon and OpenAI, from the NBI's obligations, a point industry figures have questioned.
Microsoft's exclusion has drawn particular scrutiny, with the company generating approximately $7.5 billion in gross Australian revenue in 2023, well above the legislation's $250 million threshold.
The consultation period on the draft legislation is now open.
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