Australia plans to tax Meta, Google, and TikTok to support journalism

Australia unveiled draft legislation Tuesday that would impose a 2.25% revenue tax on digital giants Meta, Google, and TikTok unless they agree to pay news publishers for content. The proposed News Bargaining Incentive represents the government’s second attempt to make tech platforms financially support journalism.

Prime Minister Anthony Albanese emphasized the importance of compensating news creators for their work. “It shouldn’t just be able to be taken by a large multinational corporation and used to generate profits for that organization with no compensation appropriate for the people who produce that creative content,” Albanese told reporters in Melbourne. “We think that investment in journalism is critical to a healthy democracy.”

The draft legislation, which the government plans to introduce to Parliament by July 2, builds upon Australia’s 2021 News Media Bargaining Code. That earlier law successfully pressured digital platforms to reach commercial agreements with Australian news publishers rather than face mandatory arbitration.

However, the effectiveness of the original code has diminished as platforms have avoided renewing deals by removing news from their services. The new proposal aims to create a stronger financial incentive for platforms to pay for journalism.

Under the plan, companies could reduce or eliminate their tax liability by striking deals directly with news organizations. The government estimates the initiative would generate between AU$200-250 million (US$144-179 million) annually – roughly equivalent to what platforms paid news outlets when the original bargaining code was working at its peak.

Communication Minister Anika Wells explained that tax revenue would be distributed among news organizations based on their journalist headcount, creating a direct link between funding and newsroom employment.

The legislation specifically targets Meta Platforms (owner of Facebook and Instagram), Google (owned by Alphabet Inc.), and TikTok (majority-owned by U.S.-backed investors). All three companies have expressed opposition to the proposed law.

Meta rejected the premise of the legislation, stating in a written response: “The idea that we take their news content is simply wrong. This proposed legislation, which would apply to platforms regardless of whether news content even appears on our services, is nothing more than a digital services tax.”

The company further argued that the proposal would create a news industry dependent on government subsidies rather than fostering innovation or sustainability in journalism.

Google similarly opposed the tax, claiming it “ignores the fact that Google already has commercial agreements with the news industry, misunderstands how the ad market changed and mandates payments from some companies while arbitrarily excluding platforms like Microsoft, Snapchat and OpenAI – despite the major shift in how people consume news.”

TikTok has not yet responded to requests for comment.

The proposal comes amid growing global scrutiny of tech giants’ relationships with news publishers. Critics of Australia’s approach, particularly in the United States, have previously argued that such regulations disproportionately impact American companies.

When asked about potential U.S. pushback, Prime Minister Albanese remained resolute: “We’re a sovereign nation and my government will make decisions based upon the Australian national interest.”

The draft legislation highlights ongoing tensions between tech platforms and traditional media worldwide. As news organizations struggle with declining advertising revenue, governments increasingly view regulatory intervention as necessary to preserve journalism’s vital role in democratic societies.

Industry analysts note that Australia’s regulatory approach has influenced similar initiatives in other countries, including Canada and the European Union, as governments seek sustainable funding models for journalism in the digital age.