Australia

Australia Levies Tech Giants Over News Publisher Deals

Is this a lifeline for local journalism or protectionism targeting foreign tech giants?

Published AUG 21

Australia Levies Tech Giants Over News Publisher Deals

Story

Above: A laptop screen and social media icons displayed on a phone screen in Krakow, Poland on Feb. 4. Image credit: Jakub Porzycki/NurPhoto/Getty Images

The Facts

Australia's parliament on Thursday passed the News Bargaining Incentive, which imposes a 2.5% levy on local digital advertising revenue for major tech platforms that fail to reach commercial deals with at least eight Australian news publishers.
The Hindu
The Australian
The levy applies to Meta, Alphabet's Google, TikTok and Microsoft's LinkedIn, covering platforms with a significant social media or search presence in Australia and local advertising revenue exceeding Aus $250 million ($178 million).
SBS News
Tickernews
Bloomberg Law
Platforms can cut their levy liability via deals with publishers before their financial reporting period ends. Spending with large publishers carries a 150% offset, while agreements with small and medium-sized outlets carry a 200% offset.
The Saturday Paper
Medianama
The final legislation raised the minimum number of publisher deals required from six to eight and increased the distribution loading for regional journalists and small-to-medium publishers from 10% to 20%.
Ad News
TV Blackbox
Meta argued in June that the measure could breach the Australia-U.S. FTA, while Americans for Tax Reform called the policy "a shakedown" and urged President Donald Trump's administration to mull higher tariffs on Australian exports.
National Technology News
The Epoch Times
Medianama
The new law follows Australia's 2021 News Media Bargaining Code, which Meta declined to renew, reportedly walking away from deals worth about $70 million and reducing news availability on its platforms.
TV Tonight
Medianama
Firstpost

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Australia's news bargaining incentive is a necessary step to make tech giants pay their fair share for profiting off journalism. A 2.75% levy on digital ad revenue ensures regional and independent media can survive against monopolization by some of the wealthiest companies on earth.

The Canberra Times

Senator the Hon Sarah Henderson

Narrative B

Slapping a discriminatory tax exclusively on a handful of foreign tech companies is bad policy posing as media salvation. The levy risks triggering the same trade fallout that got Canada frozen out of negotiations with the U.S. over its digital services tax. Propping up struggling mainstream outlets through a targeted penalty on foreign platforms is simply protectionism.