Australia proposes tax on Meta, Google, TikTok

Summary

Australia proposed a 2.25% revenue tax on major platforms that do not pay news publishers for journalism.

Why this matters

The proposal marks Australia’s second attempt to make digital platforms pay for news content and could reshape how technology companies compensate publishers. It also may affect relations with U.S.-based companies targeted by the measure.

Australia released draft legislation Tuesday that would tax major digital platforms, including Meta, Google, and TikTok, unless they make commercial deals with news publishers to pay for journalism.

The government said it planned to introduce the legislation to Parliament by July 2. The proposal, called the News Bargaining Incentive, would charge major platforms that do not strike deals with publishers 2.25% of their Australian revenue.

The government said platforms would receive offsets that reduce their overall costs if they agree to pay publishers for journalism. It estimated the measure would raise 200 million to 250 million Australian dollars ($144 million to $179 million) a year, about what platforms paid news outlets when the News Media Bargaining Code was at its peak.

Communications Minister Anika Wells said the government would distribute the money among news organizations based on the number of journalists they employ.

Under the 2021 News Media Bargaining Code, platforms reached commercial deals with publishers rather than enter arbitration and have a judge set prices. But the government said platforms have since avoided renewing those deals by removing news from their services.

The proposed tax would apply to Meta Platforms, which owns Facebook and Instagram, Google, owned by Alphabet Inc., and TikTok, which is majority-owned by U.S.-backed investors.

Meta said news organizations “voluntarily post content on our platforms because they receive value from doing so.”

“The idea that we take their news content is simply wrong. This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax,” Meta said in a statement.

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