Tech companies are invoking Australia’s free trade agreement with the US and threats of Trump administration retaliation in an attempt to kill off the federal government’s proposal to force them to pay news companies.
The news media bargaining incentive is designed to force Meta, Google and TikTok to make commercial deals with Australian media outlets or pay a dedicated 2.25% levy on local revenues. The Albanese government has been consulting on the draft legislation since April, with submissions closing late last month.
Meta, the parent company of Facebook, Instagram and WhatsApp, has argued that the news media bargaining incentive is a “discriminatory tax” that is “poorly designed” and “grossly unfair”. It released its formal submission to the draft legislation on Thursday morning, and said it would insulate publishers from competitive pressures by guaranteeing revenue. Meta claimed the NBI “plainly violates” the US and Australia free trade agreement.
Meta’s position has been echoed by US tech lobby groups, who in letters to the government last month also cited the agreement. The National Foreign Trade Council said the bill created a disincentive for growth for digital platforms and was potentially in violation of the agreement. The Software & Information Industry Association said the incentive would “likely run afoul” of Australia’s obligations and would be the “type of measure that the Trump administration has said it might retaliate against”.
Australian media executives have pushed back. News Corp Australasia’s executive chair, Michael Miller, said Meta’s opposition revealed “deep contempt for Australian law and standards of behaviour”. Nine Entertainment’s chief executive, Matt Stanton, said the bill would be “completely unnecessary if these companies simply adhered to existing Australian law”. Southern Cross chief executive, Rohan Lund, said quality news is vital for democracy and digital platforms should pay for the content they profit from.
