New Australian policy pressures Google, Meta, TikTok to fund journalism or pay tax

Australia is preparing a major new rule that could change how global tech companies pay for news content, in a move aimed at strengthening the country’s struggling journalism industry.

The government has announced a proposal that would require large digital platforms such as Google, Meta and TikTok to either make deals with news publishers or pay a new levy on their Australian revenue. The plan sets the levy at 2.25 percent of local earnings for companies that do not reach agreements with media organisations.

Tech Firms Face News Levy:

According to a news report by the First Post, this new approach is called the News Bargaining Incentive (NBI). It is designed to fix problems in an earlier system that tried to make tech companies support journalism through negotiation. That earlier system, the News Media Bargaining Code, led to deals worth hundreds of millions of dollars. However, it became less effective over time after Meta decided not to renew agreements that were reportedly worth around 70 million dollars.

Under the new plan, companies with more than 250 million dollars in annual Australian revenue and large user bases will be covered by the rules. The government says this will ensure that major platforms contribute fairly to the news they display and benefit from.

Prime Minister Anthony Albanese said the aim is to support local journalism. “We’re taking the next steps to make sure platforms contribute to Australian news. Because there’s no substitute for Australian news and stories told by Australian journalists,” he said.

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Platforms Urged to Fund News:

Communications Minister Anika Wells also defended the policy, pointing out how people now get much of their news through social media and search engines. She said, “People are increasingly getting their news directly from Facebook, from TikTok, and from Google,” according to The Guardian. She added that it is fair for large platforms to support the journalism that helps fill their feeds and generate their advertising revenue.

A key feature of the new system is that companies can avoid paying the levy if they strike commercial agreements with news organisations. To encourage this, the government is offering offsets of up to 170 per cent for companies that support deals, especially with smaller publishers.

Officials say the goal is not just to collect money, but to rebuild support for local media in a changing digital world. The proposal signals a stronger stance from Australia as it tries to balance the power between global tech giants and the news industry that relies on them.