Australia Targets Big Tech with a New Tax and Requires Media to Share Revenue
Targeting Meta, Google, and other digital giants, Australia will impose taxes on them unless they share their profits with local news outlets.
Major internet platforms and search engines will be subject to a tax, the Australian government said Thursday, unless they consent to distribute their profits to Australian news media outlets.
According to Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland, this tax, which will go into effect on January 1, would target digital businesses that make more than $250 million ($160 million) a year from activities in Australia.
ByteDance, Google, Alphabet, and Meta are among the impacted firms. The precise amount of the levy is still unknown, but it will be compensated by revenue paid to Australian media outlets.
“The real objective … is not to raise revenue,” Jones reportedly stated.
“We do not want to generate any income. The true goal is to encourage platforms and news media companies in Australia to reach agreements.
This choice comes after Meta declared it would not extend its three-year contracts to compensate Australian news publishers for their work.
The New Media Bargaining Code, passed by a previous government in 2021, requires digital businesses to enter into revenue-sharing arrangements with Australian media companies or risk fines equal to 10% of their Australian turnover.
