The Treasury estimates the 30 deals Australian media companies previously struck with Google and Meta were worth about $200 million to $250 million a year. The abandonment of the Meta code after three years is estimated to have led to the loss of hundreds of journalists’ jobs.
The idea is that governments take action to address the asymmetrical power imbalance between companies like Nine Entertainment (which owns these huge companies) and these international giants, which in the case of Google’s parents, Alphabet and Meta, have market capitalizations of $US3.5 trillion and $US1.5 trillion respectively.
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It’s worth noting that the other major tech platform that signed up to the original bargaining code, Google, has continued to make payments since the code was introduced in 2021.
Proposed new legislation known as the Media Bargaining Incentive would cover social media and search platforms with Australian-sourced revenue of at least $250 million, regardless of whether they contain news content, according to details released by assistant treasurer Daniel Mulino.
Other companies hit by the law could include TikTok owner ByteDance, while Apple and Microsoft could be on the hook with platforms Apple News and LinkedIn, respectively, if they meet Australian revenue thresholds.
This legislation has been the responsibility of the government since the beginning of this year, but has resurfaced since bilateral trade negotiations between Anthony Albanese and Trump.
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Although some Australian media companies had hoped that Trump would be sympathetic to foreign media businesses and their economic challenges in the face of America’s big tech platforms, the American president has shown no public respect for media in America or abroad; it was more like an insult. He recently threatened to sue the BBC and sought $US10 billion in damages from Rupert Murdoch’s Wall Street Journal.
Over the past three years, he has also taken legal action against CNN, the American Broadcasting Company, and CBS.
Trump’s recent friendship with Albanese could be being tested.
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