Government Targets Big Tech With New Media Levy

Australia is moving ahead with financial penalties for tech giants that fail to pay for news content.
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The federal government remains committed to penalising major digital platforms such as Google and Meta if they do not reach agreements with news organisations. The new measure, called the news bargaining incentive, is intended to encourage these companies to fairly compensate media outlets for using or sharing their news content. If they fail to do so, they will face a levy, with funds directed back into the media industry.

This measure expands on the 2021 news media bargaining code, which required platforms to pay for journalism featured on their services. However, loopholes in the original framework allowed these companies to bypass their obligations by withdrawing news content or threatening to do so. The government now aims to close these gaps by making the system more robust and difficult to avoid. The focus is on digital platforms that have more than $250 million in Australian revenue and operate as significant search engines or social media services. This could include businesses like YouTube, TikTok, Meta and Google.

Rather than applying a standard charge, the levy would only be imposed on companies that have not entered into commercial deals with media providers. Treasury is currently reviewing draft legislation and is accepting input from industry stakeholders. The government maintains the purpose is not to collect additional revenue, but to ensure media organisations receive fair compensation from the digital environment they help sustain.

If enacted as planned, the levy could change the dynamic between big tech and journalism in Australia. Its broader impact will depend on how the term “significant” platform is defined in practice. The result may influence the future of Australian media and contribute to global conversations about how technology companies compensate content creators in an ever-changing digital landscape.

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