Australia's New Levy: A Strategic Game Against Big Tech

Australia's government introduces a levy to pressure digital platforms like Meta and Google to negotiate with news publishers. As platforms refuse deals, they face higher costs, drawing parallels with Canada’s failed legislation. The initiative targets public interest journalism’s decline, though skepticism remains about its potential success.

The Australian government is doubling down on its efforts to persuade tech giants like Meta and Google to enter financial agreements with news publishers by unveiling a new levy. Dubbed the "news media bargaining incentive," it allows digital platforms to lessen their tax burden by paying for news content.

However, refusing platforms will not escape the levy as it applies irrespective of news content hosting. This measure aims to support public interest journalism, reflecting a response to the Canadian experience where Meta cut Canadian news to escape legal compulsion, leading to significant industry setbacks.

Despite its promise, the initiative raises concerns over transparency and inclusivity, leaving smaller publishers potentially disadvantaged as larger platforms continue to negotiate selectively. A public consultation detailing the incentive is expected in 2025, offering affected stakeholders a chance to voice their views.

(With inputs from agencies.)