Australia Enforces New Law Requiring Big Tech to Fund Local Journalism

Australia has enacted groundbreaking legislation aimed at safeguarding the future of its journalism industry by compelling major technology companies to financially support local news outlets. Passed on August 20, 2026, the News Bargaining Incentive (NBI) law targets digital giants including Meta, Google, TikTok, and LinkedIn.

The legislation requires platforms generating over A$250 million (approximately Sh22.77 billion) in Australian advertising revenue to either negotiate commercial agreements with news publishers or pay a government-administered levy. This levy is set at about 2.5% of their Australian digital advertising revenue, incentivizing companies to directly fund journalism rather than simply paying a tax.

Encouraging Diverse Media Support

To fully comply, qualifying platforms must reach agreements with at least eight news publishers. The law prioritizes smaller and regional media outlets by offering greater offsets for deals with small and medium publishers, as well as additional support for regional journalism and communities that are traditionally underrepresented in the media.

Addressing Digital Advertising Imbalance

The move comes in response to the shifting landscape where advertising revenue has largely migrated from traditional news media to digital platforms, while audiences increasingly consume news via social media and search engines. This has created an imbalance where publishers bear the cost of content creation, but platforms control distribution and monetization.

Australia’s earlier 2021 News Media and Digital Platforms Mandatory Bargaining Code set a precedent, but the new law strengthens regulatory measures following Meta’s 2024 decision to cease payments to Australian news organisations under previous arrangements.

Use of Levy Funds

Funds collected through the levy are earmarked specifically for supporting Australian journalism, emphasizing public-interest reporting and bolstering smaller and regional newsrooms. This approach aims to sustain local coverage on critical issues such as councils, courts, and community affairs often overlooked by larger media houses.

Industry Response and Global Impact

While technology companies and industry groups have criticized the law as a forced transfer of funds that could disrupt the digital advertising market, the Australian government maintains that protecting journalism’s sustainability is a public priority that cannot be left solely to market forces.

This legislation signals Australia’s firm stance that Big Tech must contribute to the viability of local news if they wish to operate within its lucrative digital advertising market.