Australia wants to make digital platforms pay for news — even if they block it, like Meta did here
The Australian government has taken a bold step in ensuring that news media organizations are fairly compensated for their content by proposing a tax on large digital platforms and search engines. This move comes after Meta Platforms, the owner of Facebook, blocked news links in Canada to avoid paying fees to media companies. In response, Australia is set to implement rules that will require internet companies to negotiate revenue-sharing agreements with publishers or face financial penalties.
The tax will apply to tech companies earning over 250 million Australian dollars in revenue from Australia annually, including giants like Meta, Google, and ByteDance. The government aims to incentivize agreement-making between platforms and news media businesses by making revenue-sharing with media organizations the more cost-effective option. Assistant Treasurer Stephen Jones emphasized that the objective is not to raise revenue but to support the sustainability of journalism in Australia.
Meta’s decision to not renew deals to pay Australian news publishers for their content has sparked debate over the fairness of compensating media organizations. Google, on the other hand, has struck revenue-sharing agreements with numerous Australian news companies and has committed to renewing those deals. However, Google has expressed concerns about the government’s new approach, stating that it may jeopardize commercial deals with news publishers in Australia.
TikTok, as an entertainment platform, has highlighted that news content is not a primary focus for its users. The company has expressed willingness to engage in the consultation process to understand the implications of the proposed tax. Overall, the government’s intention is to ensure a fair and sustainable media ecosystem in Australia by encouraging digital platforms to support the news industry.
Australian officials have communicated the rationale behind the tax to their counterparts in the United States, where most digital giants are headquartered. The government emphasizes that the tax is not a traditional levy but an incentive to reinforce existing laws aimed at supporting journalism. The focus is on fostering collaboration between digital platforms, search engines, and Australian news publishers to uphold the integrity of democracy.
Communications Minister Michelle Rowland underscored the importance of revenue-sharing to protect Australian democracy and public interest journalism. The rapid growth of digital platforms has disrupted the media landscape, posing a threat to the viability of journalism. The government’s policy intent is clear: to promote fair deals between digital platforms and news publishers to ensure the health of democracy in Australia.
In conclusion, Australia’s move to tax large digital platforms and search engines reflects a commitment to supporting news media organizations and safeguarding the integrity of journalism in the digital age. By incentivizing revenue-sharing agreements, the government aims to create a sustainable ecosystem where news publishers can thrive alongside digital platforms. This initiative underscores the importance of collaboration and fairness in the evolving media landscape.
