Australia's government said on Tuesday that Meta, Alphabet’s Google and TikTok could be penalised unless they negotiate payments with local media outlets for news carried on their platforms.
Under a proposed “News Bargaining Incentive”, the tech giants would face a 2.25% levy on Australian revenues if they fail to strike deals, with proceeds redirected to support domestic journalism.
Communications Minister Anika Wells said it was only fair that large digital platforms contribute to the journalism that drives engagement and revenue on their services, warning that companies choosing not to make deals “will end up paying more.”
Prime Minister Anthony Albanese brushed off concerns about possible backlash from U.S. President Donald Trump, saying Australia would act in its national interest.
The levy would apply from the 2025–26 financial year to platforms with significant Australian operations and local revenues exceeding A$250 million, capturing Meta, Google and TikTok.
Funds would be distributed to news organisations based on journalist headcount, with greater incentives for agreements involving smaller outlets. Major Australian media groups welcomed the plan, calling it vital to the future of local journalism.
Meta and Google criticised the proposal, describing it as a digital services tax and arguing that it could make news organisations dependent on government support. TikTok declined to comment.
Australia is not alone in requiring large technology platforms to pay news publishers but its proposed approach is among the most aggressive so far. Countries such as Canada and France already require Google, Meta and other platforms to strike payment deals with media outlets, while the European Union relies on copyright and antitrust rules to compel licensing agreements.
No other country currently uses a standing tax as a fallback, making Australia’s model one of the toughest enforcement mechanisms yet - and one closely watched by governments and technology firms worldwide.
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