Posted on by Nathalie Tay
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Tech Giants, Trump, and Trade: The Battle Over Australia’s Media Law
03 Apr
Australia’s News Media Bargaining Code (NMBC) is under renewed scrutiny as the United States raises trade concerns, with Donald Trump potentially introducing new tariffs. Enacted in 2021, the NMBC requires digital platforms like Meta and Google to compensate news publishers for content appearing on their sites.
Initially, Meta responded by blocking news access for Australian users but later agreed to multi-million-dollar deals. However, in 2023, Meta announced it would not renew these agreements, instead reallocating up to $200 million in funds elsewhere.
In December, the Australian government proposed a new tax on platforms that refuse to negotiate with media companies. This move placed the NMBC in the U.S. Foreign Trade Barriers report, listing it alongside grievances about Australia’s pharmaceutical regulations and biosecurity protections. While the U.S. has not explicitly threatened trade actions, the NMBC’s inclusion in the report suggests it is being monitored as a potential barrier.
Trump’s possible return to office has raised questions about how his administration might react to the NMBC, given his previous willingness to impose tariffs on Australian imports. Major tech leaders—including Mark Zuckerberg, Elon Musk, Jeff Bezos, and Sundar Pichai—are reportedly aligning with Trump in hopes of securing favorable policies. Some experts speculate that tech companies may pressure a future Trump administration to challenge media payment laws, as they have done in Europe.
Despite international pressure, Prime Minister Anthony Albanese has asserted that the NMBC and other policies will not be subject to negotiation. Meanwhile, Canada implemented a similar law, Bill C-18, but faced even harsher consequences, with Meta completely blocking news content for over a year. Other countries considering similar legislation are watching closely to see how Australia handles the ongoing dispute.
Professor Axel Bruns of the Queensland University of Technology suggests that Trump’s aggressive trade stance could be a tactic to pressure Australia into dropping the NMBC. However, both the Australian government and opposition remain firm in their commitment to the law.
With the potential for increased tariffs and trade tensions, the future of the NMBC remains uncertain. While Australia aims to hold tech giants accountable, the coming months could see the NMBC becoming a bargaining chip in broader U.S.-Australia trade negotiations.
