Meta slams Australian draft law imposing 2.25% revenue levy
META•Meta says Australia’s draft media code is 'grossly unfair' and warns a compulsory levy of 2.25% on local revenues will harm its business. The company argues the law discriminates by targeting only Meta, Google and TikTok and will fail to sustain a diverse Australian news industry.
1. Meta condemns draft legislation
Meta has publicly criticized the proposed Australian media code as 'poorly designed' and 'economically incoherent', stating it unfairly targets their platforms and will not deliver a sustainable news sector. The company labels the compulsory levy a discriminatory tax on foreign firms that generate local traffic without compensation.
2. Proposed levy and deal framework
Under the draft law, social media operators must first negotiate content deals with Australian publishers or face a compulsory levy equating to 2.25% of their local revenue. Meta, Google and TikTok are explicitly named based on revenue thresholds and domestic user counts.
3. Industry context and implications
More than half of Australian news consumers rely on social media platforms, while traditional outlets face declining ad revenues and readership. Supporters argue the levy could shore up struggling newsrooms, but opponents warn it may lead platforms to restrict news content for Australian users.
