Key facts
- A US trade group warned Australia's expanded News Bargaining Incentive (NBI) could draw a response from Donald Trump.
- The National Foreign Trade Council (NFTC) criticized the NBI for covering more US companies and potentially harming Australia's investment climate.
- Former ACCC chair Rod Sims believes the NBI lacks ambition and should aim to raise more funds for journalism.
- The Australian government estimates media outlets will receive $200 million to $250 million under the proposed arrangements.
- Critics argue AI platforms are not adequately covered and that many news outlets may not secure deals.
A significant US trade organization has voiced strong disapproval of Australia's plan to expand its News Bargaining Incentive (NBI), a measure designed to compel large tech platforms to pay for news content. The National Foreign Trade Council (NFTC) warned that the move, which now includes platforms like LinkedIn, could provoke a negative reaction from Donald Trump, citing concerns over the "fair treatment" of American companies and a "deteriorating trend" in Australia's tax and investment environment.
The NFTC, representing major US tech firms and corporations, stated its disappointment that Australia is broadening the scope of the NBI. Tiffany Smith, the NFTC's vice-president of global trade policy, urged the Australian government to reconsider the legislation.
However, Australian competition experts, including former Australian Competition and Consumer Commission (ACCC) chair Rod Sims, argue that the government's proposed changes do not go far enough. Sims expressed concern about the "potential lack of ambition" and the possibility that not all media outlets will secure deals, suggesting that the government should aim for higher funding levels, potentially over $300 million annually, and include more companies and account for inflation.
Assistant Treasurer Daniel Mulino indicated that Australian media outlets are expected to receive between $200 million and $250 million in total under the current arrangements. The proposed NBI requires big tech platforms to strike at least six individual deals with news publishers to avoid paying a higher levy.
News Corp Australia's chair, Michael Miller, criticized the changes, stating they "gut the incentive for tech platforms to strike fair deals." Both the Coalition and the Greens have also opposed the NBI's current form, making its passage through parliament uncertain. Concerns were also raised by Sims and former ACCC chair Allan Fels that AI platforms benefiting from Australian news content, such as Google's Gemini, would not be captured by the legislation, and that many news outlets would likely miss out on receiving compensation.