Australia to require Google, Meta, TikTok to pay for local news or face new tax | Latest Tech News
Australia’s authorities announced draft laws on Tuesday that would require Meta, Google and TikTok to pay local news shops for use of their articles – or face a vital 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 attain offers with news shops.
“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 convention.
Australia needs to impose new taxes on tech companies who don’t pay for news content. REUTERS
“Platforms should do deals with news organizations. If they decide not to, they will end up paying more,” Wells added.
If accepted, the law would take impact on July 1. Proceeds generated from the law would help assist Australia’s journalism industry.
Wells said the tax charge will drop to 1.5% if enough business agreements are struck. Even at that charge, the initiative is anticipated to generate between A$200 million and A$250 million in income.
Efforts to impose recent taxes on US tech companies might draw the ire of the Trump administration, which has repeatedly criticized comparable efforts undertaken in the United Kingdom and European Union.
Meta slammed the proposal as “nothing more than a digital services tax.” NurPhoto via Getty Images
President Trump and his allies argue that American companies are being unfairly focused.
Meta spokesperson Andy Stone leaned into that place 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 didn’t immediately return requests for remark.
Meanwhile, Australian Prime Minister Anthony Albanese signaled that the nation would transfer ahead regardless of any backlash from Trump.
Australian Prime Minister Anthony Albanese gestures during a press convention. REUTERS
“We’re a sovereign nation,” Albanese said. “And my government will make decisions based upon the Australian national interest.”
With Post wires
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