The Australian government said on Tuesday that Meta, Alphabet’s Google, and TikTok could face multimillion-dollar charges if they did not negotiate deals to pay local media outlets for news on their platforms.
A proposed News Bargaining Incentive would tax the three big tech companies 2.25% on their local revenues unless they struck agreements, with the proceeds to be directed to news companies to boost Australian journalism.
“People are increasingly getting their news directly from Facebook, from TikTok and from Google, and we believe it’s only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue,” Communications Minister Anika Wells told a news conference.
“Platforms should do deals with news organisations. If they decide not to, they will end up paying more,” she said.
When asked whether the government was concerned about any backlash from U.S. President Donald Trump, Prime Minister Anthony Albanese said: “We’re a sovereign nation. And my government will make decisions based upon the Australian national interest.”
Under the draft legislation, the levy would start from the 2025-26 financial year, which starts on July 1.
It applies to companies with a “significant” social media or search service in Australia, and local revenue exceeding A$250 million ($179.3 million) – capturing Meta, Google and TikTok.
It does not apply to artificial intelligence platforms, which are instead regulated through separate legislation, the government said.
“The News Media Bargaining Incentive means that if a platform doesn’t do a deal with a news publisher, the money will come to us and we will deliver that funding to news organisations based on how many journalists they employ,” Wells said.
By Christine Chen and Byron Kaye
