The Australian government has unveiled a draft news bargaining incentive scheme that would impose a 2.25% levy on the local revenues of major tech platforms, including Google, Meta, and TikTok, unless they strike deals with news publishers. Prime Minister Anthony Albanese urged the digital giants to negotiate agreements to avoid the tax, warning that they should not exploit journalists' work for profit without fair compensation.
Tech Giants Push Back
Both Google and Meta have criticized the proposed levy. A Meta spokesperson stated that the government's position is 'simply wrong,' arguing that a 'government-mandated transfer of wealth from one industry to another, with no connection to the value exchanged, will not deliver a sustainable or innovative news sector.' Google rejected the need for reform, pointing to its existing commercial agreements with over 90 news businesses and 226 outlets, and criticized the exclusion of AI platforms like OpenAI from the scheme.
Details of the Scheme
Under the News Bargaining Incentive (NBI), platforms can avoid the levy by signing new deals with publishers, with greater offsets for agreements with smaller outlets. The government expects the plan to generate up to $250 million annually for Australian journalism. If platforms choose not to make deals, the government will collect the levy and distribute it to media outlets based on the number of journalists they employ.
The scheme applies to platforms with annual Australian revenue over $250 million and a significant number of users: 5 million for social media services and 10 million for search websites. Currently, this captures TikTok, Google, and Meta, but Assistant Treasurer Daniel Mulino noted that other companies reaching those thresholds would also be included.
Reactions from Publishers and Former Regulators
Former ACCC chair Allan Fels called for swift implementation, stating that 'the delay in progressing these reforms has only reinforced the extent to which large digital platforms have been able to avoid accountability.' A joint statement from major publishers including the ABC, News Corp, Nine, and Guardian Australia emphasized that journalism is 'under threat' and that all platforms 'need to step up.'
Exclusion of AI Platforms
The plan does not cover AI platforms like OpenAI, which also use news content. Mulino said this is being examined through other policy forums, including work on copyright led by the Attorney-General. The government plans to introduce the draft legislation to parliament in the winter sitting period.
