Australia Passes Law Requiring Tech Giants to Fund News Outlets
New legislation mandates commercial deals between platforms and media companies or a 2.5% levy on digital advertising revenue.
Quick Look
- Australia has enacted legislation requiring tech giants like Google and Meta to pay for distributing local news content.
- Companies must strike commercial deals with media outlets or face a 2.5% levy on Australian digital advertising revenue.
AI-generated summary
Why It Matters
Australia has previously implemented regulations targeting tech platforms. The current law mandates commercial deals to fund newsrooms or imposes a 2.5% levy on digital advertising.
In Parliament, Australia's Prime Minister Anthony Albanese hailed the changes as a model for the democratic world.
PRIME MINISTER ANTHONY ALBANESE: They encourage these tech giants to do deals with media companies. But if they don't, they will make a payment that will directly assist in the employment of journalists.
KUKOLJA: The message to Google, Meta, LinkedIn and TikTok's owner, ByteDance, is make commercial deals with Australian media outlets to fund newsrooms or face a 2.5% levy on digital advertising revenues in Australia. NPR has requested comment, but there's been no word yet from the companies in question. Meta, which owns Facebook and Instagram, previously criticized the measure as indefensible and grossly unfair, arguing that it violates the U.S. Free Trade Agreement with Australia. The White House reacted with accusations of foreign extortion. Fei Gao is a taxation and governance expert at the University of Sydney and says the digital platforms will have to consider their options.
FEI GAO: Either they need to negotiate with Australian media companies, like required by the Australian government, or to lobby Washington to put pressure on Australia government, which also is costly.
KUKOLJA: Gao says Australia is already on the Trump administration's radar, as the U.S. trade representative reviews aspects of Australian digital regulation for alleged unfair trade practices. Last year, President Trump vowed to stand up to countries that, quote, "attack incredible American tech companies." More recently, he threatened 100% tariffs on European nations that would impose a digital services tax on American tech giants. Gao believes if Trump used Australia's latest efforts as such attacks, he could respond.
GAO: For Trump administration particularly, additional tariffs on Australian exports - that's quite possible, and that's feasible.
KUKOLJA: Free TV, the group which represents commercial television networks in Australia, has called the news funding scheme a critical step towards ensuring global tech platforms contribute fairly to the Australian journalism they rely on.
What to Watch
AI outlook — possibilities, not facts
Tech companies will either negotiate deals with Australian media or face a 2.5% levy.
Very likely · Within months
Open Questions
- Will the U.S. impose retaliatory tariffs on Australian exports?
- How will tech companies respond to the 2.5% levy?
