Australia passes law forcing Meta, TikTok, and others to Pay for News.
Lawmakers in Australia approved new legislation on Thursday that will compel major technology companies to hand over millions of dollars unless they negotiate commercial agreements with domestic news publishers.
The measure, known as the News Bargaining Incentive, imposes a 2.5 percent tax on the firms’ local advertising income whenever they fail to reach such deals. Revenue collected under the scheme will flow directly to Australian media organisations, recognising the role their reporting plays in attracting users and generating advertising income on digital platforms.
The levy targets companies operating significant social media or search services that earn more than 250 million Australian dollars in local advertising each year. Among those covered are Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn. Platforms can escape the charge by securing agreements with at least eight different publishers before the close of their reporting period. The value of those contracts will then be deducted from any potential liability.
Under the rules, deals must either support the creation of news content or involve making publisher-produced news available online. Spending directed toward large publishers receives a 150 percent offset against the levy, while agreements with smaller and medium-sized outlets attract a more generous 200 percent credit. No single contract may reduce a platform’s liability by more than 25 percent, ensuring the benefit is spread across a wider range of media businesses.
Government officials underlined the urgency of the new framework. “The legislation is here, and the message to platforms to pursue commercial deals is clear. Deals will need to be finalised before the end of a digital platform’s financial reporting period to be used to offset their liability in that period,” they stated. They also described the day as “an important day for Australian news businesses and Australian journalism.”
The bill cleared parliament just one day after lawmakers approved separate measures limiting gambling advertisements. Together the two reforms signal a determined effort to strengthen the position of local media and rein in the commercial power of global digital firms. Industry observers will now watch closely to see how quickly the tech companies respond with concrete bargaining offers.
