Meta’s Strong Opposition to Australia’s News Bargaining Incentive
Meta, the company behind Facebook, Instagram, and WhatsApp, has strongly criticized the Australian federal government’s proposed News Bargaining Incentive (NBI) as “discriminatory” and argued that it would harm rather than help the media industry. The company claims that the legislation, which would require tech giants to pay 2.25 per cent of their revenue in Australia if they do not reach individual deals with media companies, is not only unfair but also economically flawed.
Google and TikTok would also be subject to similar measures if the legislation is passed. The government states that the fees collected would be directed back to the news media industry. This comes after social media companies have bypassed the current News Bargaining Code, introduced in 2021, by removing news content from their platforms. Meta had previously announced in 2024 that it would not renew its Australian news agreements.
In a blog post outlining its submission to the government based on the draft legislation, Meta expressed its strong opposition, stating that the laws would insulate Australia’s media ecosystem from necessary changes in the current digital landscape.
“It is discriminatory, economically incoherent, and will not deliver the sustainable news sector that Australian journalists and audiences deserve,” the company said.
“This is not a plan to save journalism. It is a tax on innovation dressed up as media policy.”
Meta claimed that before it removed Facebook News in Australia, daily active users had dropped by 80 per cent. The company argues that the government is using outdated data that fails to account for the rise of TikTok and short-form video content on social media platforms, as well as the increasing use of artificial intelligence.
“People come to our platforms for connection, entertainment, and creator content, not to click on news articles,” it said.
A study from the University of Canberra, released last year, found that 26 per cent of Australians get their news from social media, with 40 per cent of 18- to 24-year-olds receiving their news from Instagram. Despite this, Meta maintains that the regulations are unfairly targeted at foreign companies, giving local outlets a “free pass.”
“It applies only to three foreign companies, penalising them for bringing new products and technologies to Australia,” it claimed.
The company also argues that the laws would violate the free trade agreement between Australia and the United States, which requires Australia to grant American companies “treatment no less favourable” than local companies.
Meta further criticized the tax being imposed on revenues outside of news publishing, claiming that taxing products not related to news media is “indefensible.”
“Not only does this revenue base lack direct connection to news publishing, it also captures innovations that Meta is bringing to the Australian market; products that have no relation whatsoever to news content,” Meta claimed.
The draft legislation, announced in April, was supported by Australian media outlets, including Nine, the publisher of this website, in a joint statement.
“The vibrancy of Australian democracy relies on the robust and open exchange of news, views and opinions. This is under threat,” the statement said.
“If digital platforms fail to pay for the use of the news content from which they profit then journalism becomes unsustainable.
“It is also in the public interest that reliable, professionally created news and information remains accessible and visible on the digital platforms used by millions of Australians.”
The statement was written by executives from Nine Entertainment Co, as well as Network Ten, ABC, SBS, Southern Cross Media Group, Australian Community Media, News Corp Australasia, and The Guardian Australia.
Nine CEO Matt Stanton said the initiative would not be required if social media companies simply followed existing Australian laws, rather than removing news content from their platforms.
“To suggest it’s a disincentive to investment to require companies to follow Australian law is disingenuous,” he said.
“It’s time these companies stopped riding roughshod over the Australian public, respect our laws and pay their fair share.”
