The landmark Australian scheme that secured over $1 billion in payments from tech giants to news publishers is at a critical juncture, with key agreements expiring and one platform refusing to renegotiate. Former ACCC chair Rod Sims warns that urgent government action is required to prevent a collapse in funding for public interest journalism.
The Success and Looming Crisis of the Bargaining Code
The News Media Bargaining Code (NMBC), established following the Australian Competition and Consumer Commission's 2019 digital platform inquiry, was designed to address a fundamental market imbalance. Google and Facebook (now Meta) were significantly benefiting from news content without paying for it, while publishers struggled with dwindling revenues. The code's voluntary negotiation phase failed due to the platforms' overwhelming bargaining power, leading to the mandatory code.
This intervention proved remarkably successful. Three- and five-year deals were struck with virtually all Australian publishers, large and small, resulting in approximately $250 million being paid annually. However, the three-year agreements have now lapsed. Meta has publicly stated it will not engage in further deals, and the remaining five-year contracts are set to expire in early to mid-2026.
New Challenges: AI, Complexity, and Government Delay
The government's proposed replacement, the News Bargaining Incentive (NBI), is mired in complexity and faces new technological hurdles. A consultation paper has been released, but Sims criticises the process as taking "too long," with a risk that 18-24 months could pass before new arrangements are operational. By then, all existing NMBC deals will have ended, forcing media companies to consider layoffs.
Furthermore, the NBI's scope is already outdated. It targets only search and social media services, but the rapid rise of generative AI platforms like ChatGPT and Anthropic presents a fresh challenge. These "answer engines" frequently use news content without providing links or compensation. Google's own Gemini AI includes links, but its evolution could further marginalise traditional search.
The proposed NBI mechanism is also fraught. It would impose a charge on designated platforms, reducible by the value of deals done with publishers plus a bonus deduction. This creates a labyrinth of questions: How is the initial charge set? How is revenue calculated to avoid manipulation? Most critically, how is support distributed fairly among news businesses? The NBI suggests capping larger deals to prevent platforms from only dealing with major players, but this could leave many smaller publishers of public interest journalism without support.
Three Paths Forward to Save Journalism Funding
Rod Sims outlines three potential solutions to this urgent problem. First, the government must accelerate the NBI process to ensure it is operational by early 2026. It should immediately name the obvious entities to be designated under the scheme.
Second, the legislation's scope must be broadened. The NBI is intended to apply to large digital platforms "irrespective of whether they carry news content." Sims argues the existing NMBC could be amended in the same way, compelling search, social media, and AI companies to bargain with publishers.
Third, as an immediate measure, the government should activate Google's designation under the already-legislated NMBC. Google, which accounted for roughly 70% of the annual payments, cannot run a search engine without news and therefore remains subject to the code. This would secure a vital revenue stream while longer-term solutions are developed.
The core principle is non-negotiable: No business can keep producing without being paid. Journalism holds power to account, provides a record of events, and facilitates factual debate, making it fundamental to democracy. The success of the original code proves a fair model is possible, but without swift and decisive action, that $1 billion lifeline for Australian journalism could vanish.
