Google Cancels Publisher Deals, Puts Media Funding at Risk

Google has ended multi-year funding agreements with 24 small news publishers to redirect resources more broadly. While the company says this shift supports a new strategic approach, it raises concerns about declining support for local journalism and challenges the government's ongoing commitment to regulating big tech.

For the past two years, a group of community-focused publications including Indian Link, Neos Kosmos and Australian Chinese Daily, have received funding through a joint agreement brokered by a philanthropic organisation. This agreement, established in 2022 and intended to run until 2027, was created under the protections offered by the News Media Bargaining Code introduced by the previous federal government.

The Minderoo Foundation negotiated the funding deal with Google after receiving approval from Australia’s competition regulator. While exact figures were not disclosed, sources estimate the total annual payments reached several million dollars. Google has now announced a strategy change following an internal review. Future funding will instead flow through a newly developed centralised third-party system. This move will eliminate personalised arrangements and has created uncertainty for publishers that have based long-term planning on previous commitments.

This decision comes amid a wider trend. Global tech companies such as Google and Meta have started pulling back from direct commercial arrangements with publishers. These types of deals have delivered more than $600 million to Australian news media over the past three years. With Meta having already scaled down its involvement and Google now following that lead, the focus shifts to whether the federal government will step in or allow smaller publishers to lose crucial financial support.

The Albanese government previously introduced a “news bargaining incentive” as a way to encourage platforms to continue such partnerships. However, there has been no follow-through to date. Without clearer intervention, many within the sector fear that dependable journalism in diverse and specialised communities will lose vital funding. This situation has led to renewed questions over the government’s commitment to backing independent Australian media.

Source: Australian Financial Review, Palo Alto Daily Post, Politico