The Trump administration has described Australia's proposed media bargaining laws as 'foreign extortion', escalating tensions over plans to force big tech companies to pay for news content. The Australian government's proposal would require Meta, Google, and TikTok to strike deals with local news publishers or face a 2.25% levy.
A White House spokesperson, Kush Desai, stated: 'President Trump is committed to defending America's leading technology sector from digital services taxes and other forms of foreign extortion.' The US-based Computer & Communications Industry Association, representing Meta and Google, also criticised the plan as 'discriminatory' and urged the US government to consider retaliatory trade measures.
Australian Prime Minister Anthony Albanese defended the plan, arguing that news publishers' intellectual property should be valued. 'Someone shouldn't be able to take your work and make a profit from it without payment,' he said. Albanese stressed that the levy would only apply if companies fail to reach voluntary deals, with no revenue gain for the government.
The proposal has garnered support from the Nationals leader, Matt Canavan, who said big tech should contribute to news services. The Greens have called for more details on how funding would be distributed to ensure it supports public interest journalism. The Coalition has not yet committed, but the scheme is expected to pass with cross-party backing.
