Australia gives Google, Meta, and TikTok a choice: pay news outlets or pay a 2.25% tax

Australia says tech giants must support the news content they benefit from

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A hot potato: Australia's government has revealed draft legislation that would force some of the world's biggest tech companies to pay publishers for news content or hand over a slice of their domestic revenue. The News Bargaining Incentive would apply to Google, Meta, and TikTok, which could face a 2.25% levy on Australian revenue if they refuse to strike deals with media companies.

Prime Minister Anthony Albanese said large digital platforms "cannot avoid their obligations" under the country's news media bargaining framework.

The charge would apply to companies generating more than A$250 million in Australian revenue, though the government is framing the levy less as punishment and more as an incentive to get Facebook, Instagram, Google Search, and TikTok back to the table.

The proposal replaces Australia's 2021 News Media Bargaining Code, which pushed Google and Meta into signing deals with publishers after a public fight.

Meta briefly blocked Australians from sharing or viewing news in response, but it later reached agreements with several media companies. It took a harder line in Canada, where it continues to block news links after similar legislation.

This is not the first time Meta has pulled away from news. In 2024, Facebook removed the News tab in the US and Australia as the company shifted toward creator content, short-form video, and AI. Meta has long argued that users do not come to Facebook for news, while publishers say platforms built huge businesses partly by distributing their work.

Under the draft plan, payments made through publisher deals can offset the charge, with larger credits for smaller outlets. Money collected from platforms that refuse to make deals would be redirected to support journalism and local reporting.

Unsurprisingly, the affected companies are not thrilled. Meta called the plan a government-mandated transfer of wealth from one industry to another and argued that news makes up only a small part of what people see on its platforms.

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Google also rejected the need for new rules, pointing to existing agreements and questioning why AI companies are not covered.

Australia has already become one of the most aggressive Western countries when it comes to regulating tech giants, having introduced a world-first ban on social media accounts for under-16s. That law is facing plenty of issues, with many teens still able to access restricted platforms.