The fallout of the Albanese government’s proposed News Bargaining Incentive feels predictable. The tech oligarchs will likely urge Donald Trump to punish Australia for the government’s efforts to protect publishers from the financial harm caused by the big tech platforms’ use of news content from established media companies.
It is the same playbook used by the big US pharmaceutical companies to fight back against Australia’s Pharmaceutical Benefits Scheme and similar programs in other countries. Australia has so far dodged much of Trump’s tariffs on medicines, but Trumps’ desire to punish US trade partners is unwavering.
Trump’s contempt for mainstream media companies in the United States is explosive. In his 2016 presidential campaign, he labelled the major media companies “the enemy of the people” – a line right out of Soviet dictator Joseph Stalin. Trump has called any reporting that varies from the lines coming out of his and his press secretary’s mouth as “fake news.” That term has now become for some politicians worldwide the go-to denial of authoritative media reporting.
We could see Trump’s anger at the media even after the attempt on his life, and that of others, in his extraordinary interview with CBS’ 60 Minutes the day after the White House Correspondents dinner. After discussing what Trump saw and felt, Norah O’Donnell of CBS quoted from the alleged shooter’s manifesto on why he hated officials who were allegedly involved with Jeffrey Epstein. Trump erupted at O’Donnell.
“I was waiting for you to read that, because I knew you would, because you’re horrible people,” Trump said. “Yeah he did write that, I’m not a rapist … I read the manifesto. You know, he’s a sick person. You shouldn’t be reading that on 60 Minutes, you’re a disgrace, but go ahead, let’s finish the interview.”
Trump’s anger at mainstream media is palpable. He does not hesitate to attack and intimidate overseas media. Trump has sued the BBC for defamation and is seeking $US10bn in damages for its documentary on the January 6 insurrection at the Capitol.
Earlier this year, the ABC’s John Lyons asked Trump in a media scrum on the South Lawn of the White House about Trump family business deals and finances. “Where are you from?” Trump asked. Lyons said, the ABC. “Oh, the Australian – you’re hurting Australia,” Trump said. “In my opinion, you are hurting Australia very much right now, and they want to get along with me.”
Trump’s disdain for media is good news for the tech bros as they prepare to kill off the media tax proposals and the payments that are to be made to mainstream Australian media companies.
In discussing why this initiative is so important, Albanese said, “Journalists are the lifeblood of Australia’s media sector, playing a vital role in keeping communities informed about the news that matters to them.
“Local news matters to local communities and these stories can’t be told without Australian journalists. My government will always back Australian journalists and Australian news.”
Which is exactly what Trump does not do with US media companies.
In the course of the Iran war, Trump has spoken out at least twice in his “disappointment” that Australia has not strapped up to support and join with the US in the embargo on Iran that the US has imposed in the Persian Gulf. At a cabinet meeting in March, Trump said with respect to the closure of the Strait of Hormuz, “Australia was not great. I was a little surprised by Australia.”
Trump doubled down in April. “I’m not happy with Australia because they were not there when we asked them to be there. They were not there, having to do with Hormuz, the Hormuz strait.”
This means the door to the Oval Office is wide open for the tech oligarchs to lobby the president on this issue. It will not be a heavy lift.
The three companies most directly affected by the proposed new media tax are Meta, Google and TikTok. They are deeply invested in the Trump presidency. Meta has committed to invest US$600bn in the US in technology and AI for overall infrastructure and workforce expansion. Google has committed $68bn to data centres and AI infrastructure. In the United States, TikTok was restructured, and its algorithm is controlled by Oracle, headed by Larry Ellison, who together with his son has acquired Paramount and CBS; TikTok’s CEO met with Trump as the deal for its future was finalised.
At the White House dinner for the state visit of King Charles, guests included Ruth Porat of Alphabet and Google; Dina Powell McCormick, president and vice chair of Meta; and David Ellison, heir to the Oracle fortune.
The tech companies lobbying in Washington is exceptionally effective. They will be all over the Senate committee on foreign relations when it holds hearings to confirm David Bart as the new US ambassador to Australia. We can almost hear it now: “Mr Bart, where do you stand on the new media tax proposed by the Australian government?”
• Bruce Wolpe is a non-resident senior fellow at the United States Studies Centre. He is author of two books on Trump and Australia.
