FEDERAL JURISDICTION — The Australian federal government drafted a news media bargaining incentive proposal requiring major digital platforms to negotiate commercial deals with local media outlets. The proposed legislation would impose a 2.25 percent levy on local revenues if Meta, Google and TikTok fail to reach commercial agreements with Australian news publishers.
Government consultation on the draft legislation began in April, with a submission deadline closing late last month.
"The news media bargaining incentive is a discriminatory tax that is poorly designed and grossly unfair," Meta stated. Meta argued that the proposed policy would insulate publishers from competitive pressures by guaranteeing revenue, and stated that news organisations publish content on its platforms without charge because they receive commercial benefits.
"The proposed measure is a discriminatory, retroactive tax targeting a handful of foreign companies while competitors offering comparable services face no equivalent obligation," Meta claimed. "The policy plainly violates the free trade agreement between the United States and Australia," Meta asserted.
The National Foreign Trade Council, a trade organization, submitted correspondence to the Australian government last month. The council cited potential violations of the United States and Australia free trade agreement. "Legal analysis suggests the draft bill will result in potential inconsistencies with prohibitions against discrimination against US services and service suppliers under its national treatment and most-favored-nation rules, discrimination against digital products, and performance requirements," the National Foreign Trade Council said.
"The bill cleared a pathway for tech companies to make commercial agreements with news media," News Corp Australasia executive chair Michael Miller said. "Meta's strident opposition to the incentive once again reveals its readiness to go to extreme lengths to not pay for the content it profits from combined with deep contempt for Australian law and standards of behaviour," Miller said.
Meta characterized the proposal as a tax on innovation rather than a journalism preservation plan. The company stated its opposition to the measure. Meta also noted that the majority of users now access creator-driven video content on its platforms and argued that digital platforms are not responsible for funding public interest journalism.