The way we consume news could be set to change, as a standoff forms between the Australian Government and the world’s biggest tech companies.

After years of tension over how platforms like Google and Meta use journalism on their feeds, the government has introduced a new plan called the News Bargaining Incentive. In simple terms, it’s a push to make big tech pay for Australian news content, or face a tax if they don’t.

Here's how it could reshape how news is distributed and consumed online.

What is the News Bargaining Incentive?

The Media Bargaining Incentive is a proposed law that would apply to major digital platforms operating in Australia — including companies like Meta, Google and ByteDance (which owns TikTok).

Under the proposal, these companies would pay a charge of up to 2.25% of their Australian revenue if they don’t strike commercial deals with Australian news publishers.

The alternative is for tech companies to make individualised agreements with media organisations to pay for news content. As a result, they can reduce the tax charge, potentially down to zero.

Why is this happening now?

The idea behind the policy is simple: Australian journalism is being used to power platforms that don’t always pay for it. News headlines, video clips and articles drive engagement on social media and search engines which, in turn, drives advertising revenue. But publishers argue they haven’t always seen fair compensation in return.

Assistant Treasurer Daniel Mulino told 9 News the goal is to make sure global platforms contribute to journalism that appears in Australians’ feeds and search results.

Likely not all publishers will benefit

If the incentive becomes law, tech companies will need to either make deals with news publishers and reduce their tax, or pay the full 2.25% revenue charge.

Arguably the most concerning catch is that, to qualify for reductions, platforms would only need to sign agreements with four different media groups. The main concern is that if these deals go to large media companies, smaller or independent publishers will miss out, and will face an uneven playing field.

Where would the money go?

The government estimates the system could raise between $200 million and $250 million a year, which would be redistributed back into the news industry.

It doesn't include AI platforms, either

The proposal only applies to players like Google and Facebook — platforms like Claude and ChatGPT won't be forced to do anything. It’s a notable gap, especially as more people are now turning to AI chat tools instead of search engines to find and summarise news.

Tech companies have strongly criticised the plan

Per the ABC, Meta has called it a “government-mandated transfer of wealth,” arguing that news publishers choose to post content on its platforms because they benefit from the exposure.

Google, which already has deals with dozens of Australian publishers, said the tax is unnecessary and doesn’t reflect how people actually consume news today.

Both companies also argue that the policy doesn’t account for the broader shift in how content spreads online, particularly through algorithm-driven feeds and search results.

Feature image from Sex and the City.