New Delhi: Aimed at reshaping the economics of digital news, Australia has proposed a new law that would require global technology platforms such as Meta, Google and TikTok to either pay news organisations for content or face a tax on their local revenues.
The proposal, unveiled by the government led by Anthony Albanese, introduces a “carrot-and-stick” model under which digital platforms will be encouraged to strike commercial deals with publishers. Companies that fail to enter into such agreements could be subjected to a levy of about 2.25% on their Australian earnings.
The move builds on Australia’s earlier attempt in 2021 to compel tech firms to compensate media outlets for news content, a policy that initially led to several high-value deals. However, with some platforms stepping back from those agreements in recent years, the government is now seeking a more enforceable framework to ensure sustained funding for journalism.
Officials said the proposed mechanism, referred to as a News Bargaining Incentive, would allow companies to offset the levy if they proactively sign deals with publishers. The government estimates the measure could generate between AUD 200 million and AUD 250 million annually, which would be distributed among media organisations, with additional support for regional and smaller newsrooms.
The plan has drawn sharp reactions from the tech industry, with companies arguing that the proposal effectively amounts to a digital services tax and could disrupt the online advertising ecosystem. They have also questioned the premise that platforms derive disproportionate value from news content.
Despite the pushback, the Australian government has signalled its intent to move forward, underscoring the role of journalism as a public good that requires financial backing in the digital era. The legislation is expected to be introduced in Parliament in the coming months after consultations.
The development reflects a broader global push by governments to regulate Big Tech’s dominance in the dissemination of news and to ensure that content creators are fairly compensated in an increasingly platform-driven media landscape.
BI Bureau
