Australia on Tuesday unveiled draft laws that would tax tech giants Meta, Google, and TikTok unless they voluntarily enter into agreements to pay local outlets for news content, news agency AFP reported.
Traditional media companies across the world are battling for survival as readers increasingly consume news through social media platforms.
Australia wants major tech companies to compensate local publishers for sharing articles that generate traffic on their platforms.
Prime Minister Anthony Albanese said tech giants Meta, Google and TikTok would be given an opportunity to strike content deals with local news publishers.
If they refuse, they would face a compulsory levy amounting to 2.25 per cent of their Australian revenue, he said.
“Large digital platforms cannot avoid their obligations under the news media bargaining code,” Albanese told reporters.
Meta, Google, and TikTok named under draft law
“At this point the three organisations are Meta, Google and TikTok.”
The three firms were identified based on a combination of their Australian revenues and large domestic user bases.
Meta, Google and TikTok did not immediately respond to requests for comment.
The draft laws have been framed to prevent the tech giants from simply removing news from their platforms — something Meta and Google have done in the past.
“What we are encouraging is for them to sit down with news organisations and get these deals done,” Albanese said.
When Canberra proposed similar laws in 2024, Facebook parent Meta announced that Australian users would no longer be able to access the “news” tab.
Meta had earlier announced it would not renew content deals with news publishers in the United States, Britain, France and Germany.
Australia says journalism deserves compensation
Google has similarly threatened to restrict its search engine in Australia if compelled to compensate news outlets.
Journalism needed to have a “monetary value attached to it”, Albanese said.
“It shouldn`t be able to be taken by a large multinational corporation and used to generate profits with no compensation.”
Supporters of such laws argue that social media companies attract users with news stories and capture online advertising revenue that would otherwise go to struggling newsrooms.
Australia`s University of Canberra has found that more than half the country uses social media as a source of news.
“People are increasingly getting their news directly from Facebook, from TikTok and Google,” Communications Minister Anika Wells said.
“We believe it`s only fair that large digital platforms contribute to the hard work that enriches their feeds and that drives their revenue.”
The draft laws were released for public consultation on Tuesday, which will close in May.
They would then be introduced in Parliament later this year.
(With AFP inputs)
