Australia plans new tax on Meta, Google, TikTok to fund journalism
PTC Web Desk: The Australian government has introduced a new proposal that could require major social media companies like Meta Platforms, Google and TikTok to contribute financially to the country’s news industry.
The draft law, announced on Tuesday, is expected to be presented in Parliament by July 2. Its main goal is to push these digital platforms to strike payment deals with news organisations and support journalism.
Australian Prime Minister Anthony Albanese said journalists’ work has real value and should not be used by large tech companies without fair compensation.
“It’s important that the work of journalists is recognised and supported. A strong news industry is essential for a healthy democracy,” Albanese said.
Under the plan, called the News Bargaining Incentive, companies that refuse to make deals with news publishers could face a 2.25% tax on their Australian revenue. However, platforms that do agree to pay for news content may receive financial offsets, reducing their costs.
The government estimates this policy could generate between 200 million and 250 million Australian dollars annually. This is roughly equal to what tech platforms paid publishers earlier under the existing system.
Funds collected would be distributed among media organisations based on how many journalists they employ, according to Communications Minister Anika Wells.
This is not Australia’s first move in this direction. In 2021, the country introduced the News Media Bargaining Code, which encouraged platforms to negotiate payments with publishers.
At the time, companies chose to sign deals voluntarily to avoid arbitration. However, many of those agreements have since ended, with some platforms even removing news content altogether.
The proposal has faced strong criticism from tech giants.
Meta Platforms argued that news organisations willingly share content on its platforms because they benefit from the exposure. The company called the proposal a “digital services tax” and warned it could harm innovation in the news sector.
Google also rejected the idea, saying it already has agreements with publishers and that the policy misunderstands how the advertising market works today.
TikTok has not yet responded publicly.
Some critics in the United States have raised concerns, claiming the policy could unfairly impact American companies. However, Albanese made it clear that Australia would act in its own national interest.
“We are a sovereign nation, and our decisions will reflect what’s best for Australia,” he said.
- With inputs from agencies
