Major tech platforms must now pay Australian news publishers or face a levy. The new law targets Google, Meta, and others. Media companies could see direct funding for journalism.
Australia has enacted a law that compels major digital platforms, including Google and Meta, to either negotiate commercial agreements with Australian news publishers or pay a levy on their advertising revenue. This move is designed to ensure that global tech companies contribute financially to the local journalism ecosystem, directly impacting how news content is distributed and monetized online.
Under the new legislation, platforms such as Google, Meta, LinkedIn, and ByteDance (owner of TikTok) must reach deals with Australian media outlets to support newsroom funding. If they fail to do so, they will be required to pay a 2.5% levy on their digital advertising revenues generated in Australia. The government has positioned this policy as a model for other democracies, with Prime Minister Anthony Albanese stating that the payments will help sustain employment for journalists.
Meta, which owns Facebook and Instagram, has previously criticized the law, calling it unfair and arguing that it violates the U.S. Free Trade Agreement with Australia. The White House has responded by accusing Australia of foreign extortion. NPR reported that requests for comment from the affected companies have so far gone unanswered.
Fei Gao, a taxation and governance expert at the University of Sydney, noted that digital platforms now face a choice: comply with the Australian government's requirements by negotiating with local media companies, or lobby U.S. officials to pressure Australia, a process that could also be costly. Gao pointed out that the U.S. trade representative is already reviewing aspects of Australia's digital regulation for potential unfair trade practices. Last year, President Trump pledged to defend American tech companies against what he described as attacks from other countries, and he has threatened tariffs on nations imposing digital services taxes.
Free TV, representing Australia's commercial television networks, described the new funding scheme as a critical step toward ensuring that tech platforms contribute fairly to the journalism they rely on. The law follows other recent Australian regulations, such as the ban on social media for children under 16, and signals a growing willingness to challenge the influence of global tech giants in the local media market.
For those interested in the broader debate over the power dynamics between advertisers, platforms, and publishers, a recent analysis explores how advertiser influence is shifting in the digital ecosystem: read more about the evolving relationship between advertisers and digital platforms.
According to public filings, Google generated over $7 billion in annual advertising revenue from Australia in recent years, while Meta reported more than $1.5 billion in the same market. These figures highlight the significant financial stakes for both tech companies and local publishers as new regulations reshape the economics of news distribution in Australia.
