This report examines the impact of digital platforms, particularly Meta, on the Australian news media landscape. It focuses on the consequences of Meta's decision to abandon deals under the News Media and Digital Platforms Mandatory Bargaining Code (the Code) and explores strategies to support public interest journalism in Australia.

The interim report finds that digital platforms, particularly Meta, exert significant control over news dissemination, leading to concerns about the financial sustainability of the Australian news media sector, especially smaller publishers. The report highlights the proliferation of mis- and disinformation online and criticizes the lack of transparency surrounding platform algorithms that amplify such content. It underscores the vital role of public interest journalism in a healthy democracy and recommends a comprehensive policy response, encompassing alternative funding models, transparency requirements, and media literacy initiatives.

Key findings

• Digital platforms, particularly Meta and Google, exert significant control over the news  distribution and consumption.
• Their dominance in digital advertising has led to declining revenues for traditional media outlets, contributing to newsroom closures and job losses, particularly in regional areas.
• Meta's decision not to renew deals under the Code and the de-prioritisation of news content on its platforms threaten the sustainability of the Australian news media sector. 
• The decline in advertising revenue and the increasing reliance on digital platforms for content distribution pose significant challenges to the sustainability of public interest journalism in Australia.
• Existing self-regulatory approaches, such as the Australian Code of Practice on Disinformation and Misinformation, are insufficient to address the challenges posed by digital platforms. 

Key recommendations

• Establish a Digital Affairs Ministry with overarching responsibility for coordinating regulation. 
• Adopt transparency requirements similar to the EU's Digital Services Act.
• Explore alternative revenue mechanisms to supplement the Code, such as a digital platform levy, to support public interest journalism and media literacy initiatives.
• Established a short-term transition fund to help news media businesses diversify their income streams and news product offerings.
• A Digital Media Competency Fund should be established to fund initiatives aimed at improving the digital media literacy of Australians, particularly focusing on young people and other groups at risk of being misled by mis- and disinformation.

Coalition members dissenting report
The Coalition members’ dissenting report agrees with many of the concerns raised in the report but disagrees on the subject of the Code, arguing that the Code is sufficient but the Albanese government has failed to take sufficient action in applying it. 

Australian Greens' additional comments
The Greens argue that Meta's decision not to renew deals under the Code demonstrates a disregard for Australian laws and the Australian people and will negatively impact journalism and increase the spread of mis- and disinformation. The Greens make three additional recommendations, including implementing a digital services tax to ensure global giants contribute to the communities they profit from and prioritising media diversity reforms.