Washington – On April 27, the Australian government released draft legislation for comment to establish a “News Media Bargaining Incentive.” Under the proposal, a narrow set of predominantly foreign platforms, scoped in on the basis of arbitrary service definitions and revenue thresholds, will face a financial penalty unless they enter into payment arrangements with designated Australian news publishers. This would effectively function as a coercive levy tied to linking and displaying local news content—what is, in trade parlance, an illegal performance requirement. The measure builds on the 2021 News Media Bargaining Code, which compels platforms to negotiate payments with news businesses under threat of binding arbitration, and has already reshaped commercial arrangements in Australia’s media sector.
The Computer & Communications Industry Association strongly opposes this proposal and urges the U.S. government to publicly and forcefully challenge the draft measure, including through targeted trade remedies, if legislation passes. The Incentive is discriminatory in both design and effect, singling out predominantly U.S. firms while distorting digital markets and undermining open internet principles; CCIA has previously filed comments on the draft Code and highlighted concerns in an issue paper and a blog post. U.S. officials have previously raised serious concerns with the Code as unfair and inconsistent with international trade obligations.
The following can be attributed to CCIA President and CEO, Matt Schruers:
“Australia’s proposed News Media Bargaining Incentive is a thinly veiled discriminatory tax on U.S. digital services that is inconsistent with its commitments under the Australia-United States Free Trade Agreement. Rather than supporting a sustainable and competitive media sector, this approach distorts markets by coercing payments for linking and fundamentally altering how online services operate. If enacted, it would mark a further step away from predictable, rules-based digital trade and risk inviting reciprocal measures. The United States should make clear its opposition to such a measure and be prepared to use all available trade tools to facilitate its removal, and encourage Australia to embrace non-discriminatory policy approaches that support journalism without undermining the open internet.”
