Australia is moving to compel tech giants Meta, Google, and TikTok to contribute financially to the news industry, proposing a new levy on their revenue. Draft legislation, unveiled on Tuesday, aims to be introduced to Parliament by 2 July, creating a mechanism for these platforms to compensate news organisations for their journalism.
Government's Stance on Journalism Value
Australian Prime Minister Anthony Albanese stated that "a monetary value needed to be attached to journalists' work." He emphasised that multinational corporations should not be allowed to use creative content without fair compensation. "We think that investment in journalism is critical to a healthy democracy," he added.
Background of the News Media Bargaining Code
This is Australia's second legislative attempt to make platforms pay for news content. In 2021, the News Media Bargaining Code pressured digital platforms to strike deals with news publishers. Initially, platforms like Meta and Google reached commercial agreements to avoid arbitration. However, they have since avoided renewing those deals by removing news from their services.
The proposed News Bargaining Incentive would charge a 2.25% tax on the Australian revenue of major platforms that choose not to strike commercial deals with news publishers. The government said platforms would receive offsets and lower overall costs if they agree to pay for journalism.
Financial Impact and Distribution
The government expects the incentive to raise between 200 to 250 million Australian dollars ($144 million-$179 million) annually, similar to payments made under the previous code. Communication Minister Anika Wells stated that the revenue would be distributed among news organisations based on the number of journalists each employs.
Tech Giants' Opposition
Meta, Google, and TikTok are the targeted platforms. Meta criticised the proposal, calling it a "digital services tax" that misinterprets the advertising landscape. "The idea that we take their news content is simply wrong," Meta said, arguing that news organisations voluntarily post content for value. Google rejected the tax, noting it already has commercial agreements and that the plan excludes platforms like Microsoft, Snapchat, and OpenAI. TikTok did not immediately respond to a request for comment.
International and Domestic Reactions
All targeted platforms are American, and U.S. critics have argued that Australia's code disproportionately costs American corporations. However, Prime Minister Albanese remained undeterred, stating, "We're a sovereign nation and my government will make decisions based upon the Australian national interest."
