Meta, Google, TikTok Face New Australian Tax Over News Revenue
Australia has unveiled plans to implement a targeted tax on major digital platforms that don’t share revenue with news organizations, marking its latest move to regulate tech companies’ relationships with media outlets.
The measure, set to take effect Jan. 1, will impact tech companies earning over AU$250 million ($159 million) annually in Australia, including Meta, Google parent Alphabet, and ByteDance’s TikTok. Australian government Assistant Treasurer Stephen Jones underlined the tax’s primary function as leverage rather than revenue generation.
“The real objective is to incentivize agreement-making between platforms and news media businesses in Australia,” Jones told reporters, according to AP.
The government’s announcement follows Meta’s recent decision to discontinue its three-year payment agreements with Australian news publishers. The social media gaint maintained its opposition to the existing framework, stating it “fails to account for the realities of how our platforms work.”
Google, which has established revenue-sharing agreements with more than 80 Australian news organizations, expressed concern about the proposed measure while committing to honor its current deals. TikTok, meanwhile, distanced itself from news content, noting its platform’s entertainment focus.
Australian Communications Minister Michelle Rowland positioned the initiative as essential for preserving Australian journalism, citing digital platforms’ impact on traditional media economics. The measure builds upon Australia’s 2021 News Media Bargaining Code, which originally compelled tech companies to establish revenue-sharing arrangements with local media organizations.
Jones confirmed that Australian officials have briefed their U.S. counterparts on the tax strategy, emphasizing its role as an incentive mechanism rather than a traditional revenue measure amid broader international trade discussions.
