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Australia has introduced draft legislation on Tuesday aiming to impose taxes on major tech companies like Meta, Google, and TikTok unless they voluntarily reach agreements to pay local news outlets for content sharing. As traditional media worldwide struggles to stay afloat amid declining readership and increased social media consumption, Australia seeks to ensure local publishers are compensated for articles that generate traffic on these platforms.
Prime Minister Anthony Albanese stated that Meta, Google, and TikTok will have the opportunity to negotiate deals with Australian news organizations. Failure to do so would result in a mandatory tax of 2.25% of their Australian revenues. Albanese emphasized that large digital platforms cannot evade their responsibilities under the news media bargaining code, specifically pointing to these three companies, which were chosen based on their significant Australian earnings and large user bases domestically.
Meta, Google, and TikTok did not immediately comment on the proposal. The legislation aims to prevent these tech giants from merely removing news content from their platforms, a tactic Meta and Google have used previously. Albanese encouraged these companies to sit down with news organizations to formalize agreements.
During discussions in 2024, Meta had signaled that Australian users would lose access to the “news” tab if such laws were enacted. The company had also announced it would not renew content-sharing deals with news publishers in the U.S., U.K., France, and Germany. Similarly, Google has threatened to restrict its search engine in Australia if compelled to compensate news outlets.
Albanese argued that journalism should have a monetary value attached and that large multinationals should not exploit news content for profit without providing fair compensation. Advocates believe that social media platforms attract users with news stories while capturing advertising revenue that might otherwise support struggling newsrooms. According to the University of Canberra, over half of Australians rely on social media as a news source.
Communications Minister Anika Wells noted that it’s fair for these big digital platforms to contribute financially to the content that enriches their feeds and drives their revenues. The draft legislation was opened for public consultation on Tuesday, with feedback accepted until May. If approved, the laws will be introduced into Parliament later this year.
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