<\/p>\n
Meta has criticised Australia\u2019s plan to make large digital platforms contribute financially to news organisations, arguing the proposal would entrench publisher dependence on technology companies rather than help create sustainable media businesses.<\/p>\n
The dispute highlights a broader debate over how governments should support journalism in the digital age. While Australia argues platforms should help fund news production, Meta says forcing technology companies to subsidise publishers risks delaying the industry\u2019s adaptation to changing consumer habits and advertising markets.<\/p>\n
In a submission to the government, the owner of Facebook, Instagram and WhatsApp described the proposed News Bargaining Incentive as “grossly unfair”. The company argued that guaranteeing revenue from platforms would shield publishers from competitive pressures at a time when they need to develop more durable business models.<\/p>\n
Meta also called the proposal “poorly designed” and “economically incoherent”, claiming it would breach Australia\u2019s obligations under its free trade agreement with the United States. A healthy media sector cannot be built through taxes imposed on foreign companies, the company argued, particularly when the levy is not linked to any clear exchange of value.<\/p>\n
Under the Labor government\u2019s proposal, social media and search companies would face a 2.25% charge on Australian revenue unless they enter commercial agreements with local publishers. Companies that strike sufficient deals could reduce the rate to an effective 1.5%, while funds raised through the scheme would be distributed according to the number of journalists employed by participating outlets.<\/p>\n
The measure is primarily aimed at Meta, Google and TikTok owner ByteDance. However, it would not apply to artificial intelligence companies such as OpenAI, despite concerns from publishers that AI products are also diverting traffic away from news websites.<\/p>\n
The scheme is intended to replace Australia\u2019s News Media Bargaining Code, which led to a series of commercial agreements between publishers and platforms but was later undermined when Meta removed news content from Facebook.<\/p>\n
Prime Minister Anthony Albanese announced the policy in April, saying the government was committed to supporting Australian journalism and local reporting. Officials estimate the measure could generate between A$200 million and A$250 million annually for domestic media organisations.<\/p>\n
Australia\u2019s news industry has faced years of financial pressure as advertising revenues have shifted from print publications to digital platforms. According to the Media Entertainment and Arts Alliance, more than 19,500 journalism jobs have been lost since 2008, illustrating the scale of the challenge the government is attempting to address.<\/p>\n