Australia’s government announced draft legislation on Tuesday that would require Meta, Google and TikTok to pay local news outlets for use of their articles – or face a significant tax.
Dubbed the “News Bargaining Incentive,” the proposed law would impose a 2.25% tax on the local revenues of the social media giants that are unable or unwilling to reach deals with news outlets.
“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,” Australia’s Communications Minister Anika Wells said at a press conference.
“Platforms should do deals with news organizations. If they decide not to, they will end up paying more,” Wells added.
If approved, the law would take effect on July 1. Proceeds generated from the law would help support Australia’s journalism industry.
Wells said the tax rate will drop to 1.5% if enough commercial agreements are struck. Even at that rate, the initiative is expected to generate between A$200 million and A$250 million in revenue.
Efforts to impose fresh taxes on US tech firms could draw the ire of the Trump administration, which has repeatedly criticized similar efforts undertaken in the United Kingdom and European Union.
President Trump and his allies argue that American firms are being unfairly targeted.
Meta spokesperson Andy Stone leaned into that position in a post on X, writing that Australia’s proposal is “nothing more than a digital services tax.”
“News organizations opt to post content on our platforms because they get value from it,” Stone wrote. “We don’t take their news content. Yet the tax applies whether or not news content appears on our platforms.”
Google and TikTok representatives did not immediately return requests for comment.
Meanwhile, Australian Prime Minister Anthony Albanese signaled that the country would move forward regardless of any backlash from Trump.
“We’re a sovereign nation,” Albanese said. “And my government will make decisions based upon the Australian national interest.”
With Post wires
