Australia passes law to charge tech giants 2.75% levy for news publishers
This digest was compiled by AI from multiple sources — links to the originals are below.
Australia's parliament has passed a law requiring Meta, Google, TikTok and LinkedIn to pay a 2.75 percent levy on local revenue unless they strike deals with at least eight news publishers by the end of their annual reporting periods. The levy applies to companies generating more than AU$250 million ($178 million) in local advertising revenue and operating a significant social media service or search engine in the country.
Key Facts
- The new law replaces Australia's 2021 news bargaining code, which the government said was no longer working effectively.
- The levy is set at 2.75 percent of local revenue and can be offset by payments under agreements with at least eight news publishers by the end of each annual reporting period.
- The measure applies only to platforms with more than AU$250 million ($178 million) in local advertising revenue that operate a significant social media service or search engine in the country.
- Publisher compensation from the levy will be tied to the number of journalists, including freelancers, each outlet employs.
- Meta temporarily blocked publishers and users from sharing news after the 2021 rules took effect, and its later deals with local outlets expired two years ago.
Levy threshold and publisher payments
The law imposes a 2.75 percent levy on local revenue for Meta, Google, TikTok and LinkedIn if they do not reach agreements with at least eight news publishers by the end of their annual reporting periods. Those agreements must support publishers' production of news and can offset what the platforms would otherwise pay through the levy. The levy applies to companies generating more than AU$250 million ($178 million) in local advertising revenue that operate a significant social media service or search engine in Australia. Money collected from the levy will be directed to publishers, because the platforms benefit from news content through engagement and advertising revenue. The amount a publisher receives will depend on the number of journalists, including freelancers, it employs.
Replacement of 2021 rules
The new law replaces rules introduced in 2021 that the Australian government said were no longer working effectively. After those measures came into force five years ago, Meta temporarily blocked publishers and users from sharing news articles on its platforms. Meta later reached deals with local news outlets, but those agreements expired two years ago. Meta took a similar action in Canada three years ago, blocking Facebook and Instagram users from sharing links to news articles.
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Australia passes law to charge tech giants 2.75% levy for news publishers
