Australia pressures Meta, Google with news tax plan

Australia is ramping up pressure on major tech platforms, warning that companies like Meta Platforms, Google, and TikTok could face multimillion-dollar charges if they fail to strike payment deals with local news organizations.

Under a proposed policy known as the “News Bargaining Incentive,” the government plans to impose a levy of around 2% on the companies’ local revenues unless they reach agreements to compensate Australian media outlets for news content shared on their platforms, News.Az reports, citing Reuters.

Officials say the measure is designed to support public-interest journalism at a time when more users are consuming news through social media and search engines rather than traditional outlets.

Communications Minister Anika Wells emphasized that the policy is about fairness, arguing that tech platforms benefit financially from news content without adequately supporting the industry behind it.

Prime Minister Anthony Albanese reinforced the government’s stance, saying Australia would act in its national interest despite opposition from Donald Trump, who has criticized digital taxes on American tech firms and warned of potential retaliatory tariffs.

The proposed levy is set to take effect from July 1, at the start of the 2025–26 financial year. Companies that choose to sign deals with news publishers would receive offsets, with stronger incentives offered for agreements involving smaller media organizations.

Funds collected through the levy would be redistributed to news outlets, with allocations based in part on the number of journalists they employ.

The move is intended to replace earlier 2021 regulations that required tech companies to pay for news content but are now seen by the government as less effective.

That earlier law triggered a sharp response from Meta, which briefly blocked news sharing on its platforms in Australia before eventually reaching agreements with several media companies—deals that expired in 2024.

While TikTok has declined to comment on the new proposal, Meta and Google have yet to respond publicly, setting the stage for another potential clash between governments and Big Tech over the future of digital news.

News.Az 

By Aysel Mammadzada