Australia plans to tax tech giants if they fail to pay news outlets Technology News
Companies like Meta face taxes if they don’t pay for the news that drives traffic to their sites, depriving media companies of revenue.
The Australian government has announced plans to tax Big Tech companies if they fail to share revenues with local news media organizations.
The measure, which comes into force on January 1, will force companies like Meta and Google with Australian-based revenues of more than 250 million Australian dollars ($160m) to pay for content or face huge tax bills that could run into the millions. Could.
Announcing the move, Communications Minister Michel Rolland said on Thursday that the rapid growth of digital platforms had “disrupted” the media landscape and was “endangering the viability of public interest journalism”.
“(Digital platforms) need to support access to quality journalism that informs and strengthens our democracy,” she said.
The new rules will leave traditional media companies fighting for survival as their content is made available for free on platforms, draining precious advertising dollars. Amid the current crisis, hundreds of Australian journalists have lost their jobs.
The Australian government indicated that the parent companies of Google, Facebook and TikTok would be subject to the tax, which would be waived if they voluntarily enter into commercial agreements with Australian media companies.
“The real objective… is not to increase revenue – we expect no revenue to be increased. The real aim is to encourage agreement between platforms and news media businesses in Australia,” Assistant Treasurer Stephen Jones told reporters.
Under previous laws introduced in 2021, Google and Meta struck several deals with Australian newsrooms worth a combined $160m.
However, Meta, which owns Facebook, Instagram and WhatsApp, has indicated it will not renew the arrangements when they expire in March, arguing that news makes up a small portion of its traffic.
Responding to the new rules, a spokesperson for Meta said Australia was “charging one industry to subsidize another” and that the proposal failed to take into account “the realities of how our platforms work”. .
Google and Meta have resisted efforts to compensate news outlets in other jurisdictions.
Google began removing links to some California websites earlier this year after the state indicated it would pay them for news-driven traffic.
Facebook and Instagram have blocked news content in Canada to avoid payments to media companies.
The measure reflects Australia’s effort to rein in tech titans. Last month, the country voted for new laws restricting access to social media for children under 16.
It is also considering imposing fines on companies that fail to block objectionable content and tackle disinformation.
