Australia demands digital platforms pay for news or face heavy taxes
- The Australian government is initiating a tax for large digital platforms failing to share revenue with local media.
- This move targets major companies like Meta, Google, and ByteDance.
- The primary goal is to encourage revenue-sharing deals to support Australian journalism.
Australia has taken a significant step to address the financial struggles faced by local news organizations in the digital age. On December 12, 2024, the Australian government announced a plan to tax major digital platforms and search engines that do not engage in revenue-sharing agreements with Australian news publishers. This initiative is aimed at companies like Meta, Alphabet, and ByteDance, which have been criticized for benefiting from news content without adequately compensating the publishers. The tax's exact size remains undefined but is designed to incentivize negotiations between these digital giants and the media. The legislation is rooted in the ongoing challenges posed by the increasing dominance of digital platforms in the media landscape, which has adversely affected public interest journalism in Australia. In 2021, the Australian government had already introduced the News Media Bargaining Code, which aimed to compel firms to negotiate revenue-sharing deals or risk substantial fines. As a consequence, Meta had ceased its agreements with Australian news publishers, claiming that the existing laws were flawed and did not reflect the nature of its platform where news is not the primary content that users seek. Google has been more proactive, securing agreements with over 80 Australian news organizations since the implementation of the Code and committing to renew these contracts. In contrast, TikTok has distanced itself from the news sphere, maintaining that its platform serves primarily as an entertainment hub. Both Google and TikTok expressed concern that the proposed tax might undermine the viability of commercial agreements with local publishers. In light of these developments, the Australian government underscored that the tax is not intended to serve as a typical revenue-generating mechanism. Rather, it aims to foster a healthier media environment by ensuring that digital platforms appropriately support journalism, thereby helping to sustain democracy in Australia. The government's spokesman emphasized the objective of incentivizing agreements, reinforcing the importance of quality journalism in the rapidly evolving digital world.