Australia to impose social media 'news tax' to prop up failing media
The government's new policy mandates that major tech companies compensate mainstream news outlets or face substantial penalties.
The Australian government has unveiled a policy requiring major tech companies, including Meta (Facebook and Instagram), Google, and TikTok, to compensate Australian news organisations for content shared on their platforms.
This initiative, known as the News Bargaining Incentive, aims to force digital platforms contribute to the sustainability of public interest journalism in Australia.
Assistant Treasurer Stephen Jones argued for the importance of mainstream Australian media, stating, "Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians' access to quality journalism."
The policy introduces a levy on digital platforms with Australian revenues exceeding $250 million. Companies that fail to negotiate agreements with news publishers will face fines potentially amounting to hundreds of millions of dollars. This measure follows Meta's decision to cease payments to media companies for news content, prompting the government to act.
The government's approach contrasts with Canada's experience. In August 2023, Canada passed the Online News Act, compelling tech companies to pay news organisations for content shared on their platforms. In response, Meta blocked news content for Canadian users, leading to significant disruptions in accessing news.
The Australian government's strategy claims to avoid such disruptions by "incentivising agreements" rather than imposing outright bans. However, concerns persist about the effectiveness of this approach. Some critics argue that without stringent enforcement, tech companies may continue to bypass agreements, undermining the policy's objectives.
Notably, the policy does not include X (formerly Twitter) in its scope. The government has indicated that X will not be covered by the new measures, focusing instead on platforms like Meta and Google.
