Google, Meta warned: Negotiate new media deals or face mediation

“Let us be very clear: we already have the power to designate digital platforms, and we are prepared to use it,” Mr Jones said. “We want to see news outlets and digital platforms come together and negotiate in good faith.”

Communications Minister Michelle Rowland said in a statement the Albanese government wanted to “ensure Australian news media businesses are properly remunerated for their journalistic content”.

The comments came as the government said it would overhaul the code, accepting five recommendations made in its one-year review by Treasury, released in December last year.

The recommendations included tasking the competition watchdog – the Australian Competition and Consumer Commission – with writing “periodic” reports on the “digital platforms that should be covered by the code”. A spokeswoman for Mr Jones said it was not decided how often they would be published.

Former ACCC boss Rod Sims has previously said a code would be one way of allowing deals between media companies and artificial intelligence providers like OpenAI, the creator of ChatGPT.

The ACCC will have compulsory information-gathering powers to prepare these reports, which could lead to new platforms, like TikTok or Twitter/X, being added to the list.

Similarly, the government has accepted the ACCC may need powers to compel tech platforms and media companies to share details about their commercial agreements.

“The government will consider the extent of the ACCC’s information-gathering powers, including in relation to commercial agreements between digital platforms and news businesses,” it said in its response document.

The update comes as Canada prepares for its own version of the code, the Online News Act, to come into effect on Tuesday. Google has agreed to pay $C100 million ($111 million) to publishers for content, while Meta has so far refused.

Canadian Prime Minister Justin Trudeau said he would put pressure on Meta to compensate media companies. “We will continue to push Meta, that makes billions of dollars in profits, even though it is refusing to invest in the journalistic rigour and stability of the media,” Mr Trudeau said.

Meta, meanwhile, said it would stick to its decision. “News outlets choose to use our free services because it helps their bottom line, and today’s release of final regulations does not change our business decision,” said Rachel Curran, head of public policy for Meta Canada.

Meta started blocking news sharing on Facebook and Instagram in August, saying news holds no economic value for its businesses.

Local publishers, including Nine – the publisher of The Australian Financial Review, increasingly believe Meta will not renew its deals, which are due to expire in 2024.