Australia’s tech shakedown targets American innovation
Australian lawmakers are proposing a new levy on American tech platforms like Meta, Google, and TikTok unless they negotiate deals with local news publishers. The policy, framed as an incentive or tax, aims to redirect revenue to struggling media outlets, following the 2021 news media bargaining code. Critics argue it undermines innovation and property rights, with potential repercussions for U.S.-Australia tech relations.
- ▪The proposed levy would impose a 2.25% charge on Australian revenues of major tech platforms unless they reach agreements with local news publishers.
- ▪The Australian government estimates the policy will generate between $144 million and $179 million.
- ▪Meta previously blocked news content on Facebook in Australia in response to the 2021 bargaining code.
- ▪The policy is criticized as a government-mandated wealth transfer with no link to actual value exchanged.
- ▪U.S. tech companies operate under more permissive regulatory environments, fostering global innovation.
- ▪European and Australian regulators have increasingly imposed rules on American digital platforms.
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Australian lawmakers are considering a new scheme to regulate and to extract revenue from American technology. If enacted, it would impose a 2.25% levy on the Australian revenues of three major platforms unless they strike commercial deals with local news publishers, with the rate falling to as low as 1.5% if enough agreements are reached. The government projects the policy will generate $144 million to $179 million. It follows the 2021 enactment of the “news media bargaining code,” which sought to compel such agreements. Australian authorities now say the measure’s results have proven unsatisfactory to the nation’s politicos. Meta, for one, barred news links from Facebook two years ago in protest.
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