Australia forces Big Tech firms to pay for news or face a 2.25% tax
Australia is getting serious about making Big Tech pay for news.
The country’s government unveiled draft legislation on Tuesday that would require companies like Meta, Google, and TikTok to pay for the journalism they aggregate or reshare, or face a levy on their local revenues.
” The proposed law, called the News Bargaining Incentive (NBI), would impose a 2.
Plus, the more deals they make with media outlets, the less they pay.
If enough agreements go through, that effective rate drops to 1.
5%, which could generate between A$200 million and A$250 million back into Australian journalism.
It is the country’s second attempt to force Big Tech to fund journalism.
The Australian government introduced the News Media Bargaining Code, which officially came into effect in 2021, requiring platforms like Google and Meta to pay news publishers.
Meta’s decision to pull news content in 2024 left a pretty obvious gap in Australia’s media rules.
The NBI is the government’s attempt to fix it, and this time, there’s no workaround.
Platforms get taxed whether they carry news or not.
TikTok’s inclusion marks a notable expansion from the Code. And the draft legislation explicitly excludes AI services.
” The Trump administration has consistently opposed digital services taxes on U. tech companies, repeatedly threatening tariffs against countries that push ahead with them.
We do that right across the board. ” If passed in Australia, platforms have until July to comply, the same date the levy kicks in. Australia isn’t alone in this fight. Canada, Brazil, and the EU have all taken on Big Tech over news, with mixed results.
Canada’s 2023 law prompted Meta to pull news from its platform entirely.
Brazil’s bill has been stuck in legislative limbo since 2019.
The EU has rules on the books, but enforcement varies widely.
Meta, Google, and TikTok did not immediately respond to requests for comment
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