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Australia has passed legislation requiring major technology platforms to either reach commercial agreements with local news publishers or face a levy equal to 2.5% of their Australian advertising revenue. The measure covers major platforms including Meta, Google, TikTok and Microsoft's LinkedIn and is intended to direct more funding toward Australian journalism.
Australia has passed a new law requiring major technology companies to reach commercial agreements with local news publishers or pay a levy based on their advertising revenue in the country.
The News Bargaining Incentive imposes a 2.5% levy on Australian advertising revenue for companies that fail to meet the requirements of the scheme. The law is aimed at ensuring that major digital platforms contribute financially to the news content that helps attract users and generate advertising activity on their services.
The measure applies to companies operating a significant social-media or search service in Australia and generating more than A$250 million ($178 million) in annual advertising revenue. Companies covered by the rules include Meta, Google's parent Alphabet, TikTok and Microsoft's LinkedIn.
Platforms can avoid the levy by reaching commercial agreements with at least eight different Australian news publishers by the end of their reporting period. Spending under qualifying agreements can then be used to offset the company's potential levy liability.
The agreements must support the production of news content or cover news content produced by participating publishers and made available online through the relevant platform.
Under the legislation, payments to larger publishers can receive a 150% tax offset, while qualifying support for smaller media organisations can receive a 200% offset. However, no individual agreement can account for more than 25% of a platform's potential levy liability, according to Reuters.
The Australian government says the policy is designed to strengthen the country's news industry by directing money toward local publishers. The approach builds on Australia's earlier efforts to make large digital platforms negotiate commercially with news organisations.
The legislation comes as the relationship between technology companies and news publishers remains contentious. Digital platforms have become important channels for distributing news, while traditional media organisations have argued that platforms benefit from journalism without adequately compensating the companies that produce it.
Australia's latest measure therefore creates a financial incentive for major technology companies to negotiate directly with local publishers rather than face the new levy.
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