Australia says big tech companies have a choice: pay news outlets or pay the taxman. Prime Minister Anthony Albanese has unveiled draft legislation that would slap a 2.25% levy on Australian revenue from major digital platforms—currently Google, Meta and TikTok—unless they strike fresh deals to pay local publishers for news content, per the Guardian. The legislation, now open for public consultation, would close a loophole in a previous media law that allowed companies to avoid a levy by removing news from their platforms, as Meta has done for Australian users, per AFP.
Albanese argues companies with local revenue above $250 million shouldn't be able to generate large profits "with no compensation" to the journalists who produce the content on which they rely for views. Under the "news bargaining incentive" plan, tech companies will be rewarded for making deals with outlets, especially smaller ones, receiving offsets of up to 170% of the levy. If platforms refuse, the government would collect the levy and distribute funds based on newsroom staffing levels. The plan, backed by major news publishers, is expected to generate up to $250 million a year for journalism.
Google and Meta are pushing back hard. Meta argues the move is "simply wrong" and that news outlets choose to post on its platforms because they benefit, while Google says the tax is unnecessary, ignores its existing deals with about 90 news businesses, and arbitrarily excludes rivals such as Microsoft, Snapchat, and OpenAI. The levy applies to digital platforms with local revenue above $250 million and between 5 and 10 million users, depending on the service offered. Although AI firms are not covered in the bill, the government says they'll be handled in separate policy processes.
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