Australia faces a critical juncture in its efforts to fund public interest journalism, as landmark deals worth around $1 billion between major tech platforms and news publishers begin to expire. Rod Sims, the former chair of the Australian Competition and Consumer Commission (ACCC), has issued a stark warning and proposed three key solutions to prevent a funding collapse.
The Success and Looming Expiry of the News Bargaining Code
The original News Media Bargaining Code (NMBC), established following the ACCC's 2019 digital platform inquiry, was hailed as a significant success. It compelled tech giants, primarily Google and Facebook (now Meta), to negotiate payments for the news content that enriched their platforms. The result was a series of three- and five-year commercial agreements with publishers across Australia, large and small.
However, Sims notes that the three-year deals have now expired, and Meta has publicly stated it will not engage in further agreements. The remaining five-year deals are set to conclude in early to mid-2026. This creates a dangerous funding cliff for media organisations, which may be forced to lay off journalists hired with the proceeds from these deals. While some expired agreements have been temporarily extended, often with reduced payments, many have not.
Flaws in the New Government Proposal
In response, the government has proposed a News Bargaining Incentive (NBI). Sims argues the consultation paper is welcome but arrives too late, is overly complex, and risks favouring the powerful tech companies it aims to regulate.
The NBI proposes a system where designated search and social media companies pay a government charge, which can be reduced if they strike deals with publishers. Yet, Sims highlights major flaws: the scheme could take 18-24 months to implement, leaving a critical gap in funding. It also excludes emerging AI "answer engines" like ChatGPT, which use news content without linking back to sources.
Furthermore, the mechanism for setting the government charge and a potential cap on larger deals is fraught with difficulty. This approach could allow platforms to pick and choose which publishers to support, undermining a core principle of the original code and leaving many providers of public interest journalism without vital revenue.
Three Urgent Paths Forward
Rod Sims outlines three clear options to address the crisis and secure journalism's future.
First, the government must accelerate the NBI process to ensure it is fully operational by early 2026. It should immediately name the major digital platforms to be covered by the legislation to provide certainty.
Second, the scope of regulation must be expanded. Instead of the NBI's limited focus, the existing NMBC could be amended to apply to search, social media, and AI companies, requiring them to bargain with publishers regardless of whether they currently host news content.
Third, as an immediate measure, the government should activate the already-legislated NMBC for Google. Google's search engine fundamentally relies on news and it was responsible for roughly 70% of the $250 million paid annually under the original deals. This would provide crucial interim stability while longer-term solutions are developed.
Sims, now an enterprise professor at the University of Melbourne, emphasises that the situation is urgent. The viability of journalism, which holds power to account and underpins democratic debate, hangs in the balance. The time for decisive action is now.
