Australia to Tax Tech Giants if They Don't Pay News Outlets

Recently, the Australian government announced a significant plan to tax large tech companies that do not share revenue with local news media, drawing widespread attention. Starting from January 1, 2024, if tech giants like Meta and Google earn more than 250 million Australian dollars (about $160 million) in Australia and do not pay for content from local news media, they will face a substantial tax bill of millions of dollars. Australian Communications Minister Michelle Rowland pointed out that the explosive growth of digital platforms has "disrupted" the media landscape and poses a serious "threat" to the "viability of public interest journalism."

In recent years, traditional media companies have been struggling. Their content is freely used on major digital platforms, leading to a sharp decline in advertising revenue. As a result, hundreds of Australian journalists have lost their jobs during this ongoing industry crisis. The Australian government's new rule aims to support traditional media companies. It is understood that the parent companies of Google, Facebook, and TikTok are targeted by the tax, but the tax can be waived if these tech companies voluntarily enter into commercial agreements with Australian media companies. Assistant Treasurer Stephen Jones emphasized that the core purpose of the measure is not to increase revenue, but to "encourage agreements between platforms and Australian news media businesses."

It is worth noting that, according to laws introduced in 2021, Google and Meta had reached a series of agreements with Australian news organizations worth a total of $160 million. However, Meta recently stated that it will not renew the agreements when they expire in March next year, arguing that news accounts for a very small portion of its traffic. A Meta spokesperson said that Australia's move is like "charging one industry to subsidize another" and that the proposal does not consider the "reality of how our platforms work." In fact, Google and Meta have also shown resistance to compensating news organizations in other regions. The newspaper will continue to follow how this tax plan will be implemented and how the struggle between tech companies and local news media will unfold.