Meta Faces potential Millions in Fines for Refusing Australian Content Deals
CANBERRA - Meta could be subjected to critically important financial penalties under new Australian legislation aimed at compelling digital platforms to negotiate content deals with news media outlets.The Australian government is moving forward with a revised penalty system, despite a recent diplomatic meeting between prime Minister Anthony Albanese and former U.S. President Donald trump, who previously threatened trade tariffs against countries perceived as unfair to American companies.
The updated approach, endorsed by former competition watchdog chair Rod Sims, addresses Meta’s continued refusal to enter formal content bargaining agreements. While Meta does not lodge corporate accounts in Australia, its local subsidiary reported revenues of $1.46 billion for the year ending December 31st – a rise from $1.34 billion the previous year – highlighting the platform’s substantial financial presence. The new penalties are designed to ensure tech giants compensate Australian media for the use of their content, safeguarding the future of journalism and preventing the proliferation of unreliable facts sources.
Under the original News media and Digital Platforms Mandatory Bargaining Code, Google and Meta were required to negotiate with Australian news businesses for fair compensation for content. While Google reached agreements, Meta ceased negotiations and instead focused on voluntary arrangements. The government now intends to introduce financial incentives and penalties for platforms that don’t actively engage in thes negotiations.
Sims estimates previous commercial deals secured under the code were worth up to $1 billion over four years, and argues that failing to support journalism allows “poor-quality sources of information to thrive.” The government is currently consulting on the incentive plans, with a final approach expected to be settled in 2026.
