Australia Proposes 2.25% Levy on Tech Giants’ Local Revenue for News Deals
Australia’s draft law would compel Meta, Google, and TikTok to strike content deals with local publishers or face a compulsory levy equal to 2.25% of Australian revenue. Meta’s parent company brands the proposal discriminatory, retroactive, and economically incoherent, warning it will fail to sustain a diverse news industry.
1. Draft Law Requirements
The draft legislation targets Meta, Google, and TikTok, requiring them to negotiate content deals with Australian news publishers. If no agreement is reached, the companies would face a compulsory levy equal to 2.25% of their annual Australian revenue, applied retroactively and exclusively to these foreign platforms.
2. Meta's Opposition
Meta asserts the proposal is poorly designed, discriminatory, and economically incoherent, arguing it will undermine a sustainable news sector rather than bolster it. The company warns that compulsory payments could fail to deliver diverse journalism and may prompt service adjustments similar to the removal of its Australian news tab under earlier bargaining code discussions.
3. Implications for Google
Google could face a significant charge on its Australian operations or be forced into rushed content agreements with publishers. The company previously chose not to renew news deals in several markets, suggesting it may reassess its partnership strategy or adjust product offerings to mitigate the financial impact of a new levy.
