Australia passes law to levy tech companies for not reaching news publisher deals

New Legislation Enacted

Australia's parliament has passed a law that mandates tech companies, including Meta, Google, TikTok, and LinkedIn, to pay levies if they fail to establish agreements with local news publishers. This measure requires companies to pay 2.75 percent of their local revenues if they do not secure deals with at least eight news outlets by the end of their annual reporting periods. These agreements must support the publishers' news production to offset potential levy payments.

Scope of the Law

The new levy targets companies that generate over AU $250 million ($178 million) in local advertising revenue and operate a significant social media service or search engine within Australia. The funds collected from these levies will be directed to news publishers, acknowledging the benefit tech companies derive from news content through user engagement and advertising revenue. The amount a publisher receives will be determined by the number of journalists, including freelancers, they employ.

Replacement of Previous Rules

This legislation supersedes rules introduced in 2021, which the Australian government stated were "no longer working effectively." The previous measures had led to Meta temporarily blocking news sharing for publishers and users, though the company later reached deals that expired two years ago. A similar action was taken by Meta in Canada three years prior, where Facebook and Instagram users were blocked from sharing news links.