Australia Approaches Force Tech Giants to Cover News Content Costs

Dec. 13, Sydney — In order to preserve public interest media and safeguard democracy, the Australian government has proposed a new strategy to force digital behemoths like Meta and Google to pay for news published on their platforms or pay taxes instead. “The rapid growth of digital platforms in recent years has disrupted Australia’s media landscape, and it is threatening the viability of public interest journalism,” Minister Michelle Rowland of communications said, stressing the relevance of the effort.

“Digital channels should help in some capacity. Rowland told reporters on Thursday that they must help to support access to high-quality media that shapes and enhances our democracy.

Under the proposed plan, social media sites bringing in Australian income more than US$160 million (RM710 million) yearly would be subject to taxes meant to support local media. Companies may escape the levy, however, by freely closing business agreements with Australian media outlets.

Customized Platforms and Possible Exemptions
With the tax scheduled to take effect next year, the proposal is anticipated to impact internet titans as Google, Meta, the parent company of Facebook, and TikHub. Given Elon Musk’s lesser domestic income, officials observed that his X—formerly Twitter—may evade examination.

The action coincides with continuous challenges for Australian media outlets; hundreds of reporters have lost their jobs in recent years as newspapers shut and businesses cut down on operations. Google and Meta struck partnerships with Australian newsrooms valued at US$160 million in 2021; however, Meta has now said it would not extend these agreements when they expire in March, claiming news content represents a small share of their traffic.

Fighting Back Against News Blackouts
The charge is designed to stop platforms from totally eliminating news content—a strategy Google and Meta have used elsewhere. For example, Google limited access to certain California websites earlier this year in response to similar laws; Facebook and Instagram censored news material in Canada to avoid paying publishers.

Meta attacked the plan, saying it amounted to “charging one industry to subsidize another” and “fails to account for the realities of how our platforms work.”

Public dependence on social media for news
Proponents contend that by distorting advertising income away from ailing media outlets, digital businesses draw notable user engagement via news content. More than half of Australians turn to social media for news, according a University of Canberra survey.

More general crackdown on big technology
Australia’s most recent action reflects the ongoing attempts of the country to control the digital terrain. The government approved rules prohibiting under-16s from accessing social media only last month and suggested sanctions for internet companies failing to handle harmful material and false information.

As conventional media businesses struggle for survival in the digital era, the Australian government is drawing a line in the sand and establishing a worldwide precedent with the new tax plan approaching.

-AsiaNewsToday

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