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Australia unveiled draft laws on Tuesday that would impose a levy on tech giants Meta, Google and TikTok unless they voluntarily strike deals to pay local news outlets for content.
The proposal is aimed at addressing how traditional media companies are struggling as more readers turn to social media for news. Under the draft, Canberra wants major platforms to compensate publishers for sharing articles that drive traffic on their services.
Prime Minister Anthony Albanese said the three companies would be given a chance to negotiate content deals with local news publishers. If they refused, they would face a compulsory levy equivalent to 2.25% of their Australian revenue.
Albanese said large digital platforms cannot avoid obligations under Australia’s news media bargaining code, adding that the organizations in scope are Meta, Google and TikTok.
The changes are designed to close a loophole in a previous media law that allowed organizations to avoid a levy by removing news from their platforms.
When similar laws were proposed in 2024, Meta said Australian users would no longer be able to access the “news” tab. Meta also said it would not renew content deals with news publishers in the United States, Britain, France and Germany.
In response to the draft laws, Meta described the proposal as “nothing more than a digital services tax.”
Google said it already has commercial arrangements in place with more than 90 local news businesses and said it is the only technology company in Australia to have done so. A Google spokesman said the company is reviewing the draft legislation but “reject[s] the need for this tax,” and argued that other major platforms such as Microsoft, Snapchat and OpenAI were excluded.
The University of Canberra found that more than half of Australians use social media as a source of news.
Communications Minister Anika Wells said people are increasingly getting news directly from Facebook, TikTok and Google, and argued it is “only fair” for large digital platforms to contribute to the work that enriches their feeds and drives their revenue.
Supporters of the laws say social media companies attract users with news stories and capture online advertising revenue that would otherwise go to struggling newsrooms.
The draft laws were presented on Tuesday for public consultation, which will close in May. They are expected to be introduced into parliament later this year.
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