Meta has strongly criticized an Australian proposal to impose a new tax on social media platforms for using news content, describing the move as "grossly unfair." The $1.6 trillion parent company of Facebook, Instagram, and WhatsApp stated, "Our position is clear: this law is poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry."
Australia's News Bargaining Incentive
The Australian government's proposed News Bargaining Incentive (NBI) would impose a levy on Meta, Google, and TikTok. According to the Australian Broadcasting Corporation (ABC), the revenue raised would be distributed to local news organizations based on the number of journalists they employ. Under the Labor government's plan, Meta would be required to reach agreements with local media outlets or face taxes of up to 2.25% of revenue generated in Australia. Notably, Australia became the first country to ban social media access for children aged 16 and under.
Meta's Objections
Meta argued that the legislation would leave Australian journalism dependent on a government-administered subsidy regime while doing little to help smaller publishers and independent journalists. The company also claimed that the NBI violates commitments made in the bilateral Free Trade Agreement between Australia and the United States, calling it a "discriminatory, retroactive tax targeting a handful of foreign companies while competitors offering comparable services face no equivalent obligation." Meta pointed out that firms such as Microsoft, Snapchat, and OpenAI are reportedly excluded from the levy.
Earlier in 2024, Meta withdrew from a 2021 agreement and ended Facebook News services in Australia.
Government and Media Response
Australian Communications Minister Anika Wells defended the draft legislation, stating, "We believe it's only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue." Australian media organizations have welcomed the NBI as a "critical step" toward securing the future of Australian news. A broad coalition of news organizations, including the ABC, said, "If digital platforms fail to pay for the use of the news content from which they profit, then journalism becomes unsustainable."
