Australia Enacts Legislation Requiring Tech Firms to Pay Fees Unless They Negotiate with News Outlets

Australia has enacted legislation mandating that tech giants such as Meta, Google, TikTok, and LinkedIn pay a levy if they fail to negotiate agreements with local news publishers. The law, which has been approved by both houses of parliament, stipulates that these companies must pay 2.75% of their local revenue if they do not establish deals with at least eight news outlets by the end of their annual financial reporting periods. These agreements are designed to assist publishers in producing news content, thus reducing the levies they would otherwise incur.

The levy will apply to firms that earn over AU $250 million (about $178 million) in local advertising revenue and manage a substantial social media platform or search engine in Australia. The funds generated from these levies will be allocated to news publishers, who have been significantly affected by these companies’ operations. The amount each publisher receives will be determined by the number of journalists they employ, including freelancers.

This new legislation replaces previous rules established in 2021, which the Australian government deemed ineffective. Following the introduction of these earlier measures, Meta temporarily restricted publishers and users from sharing news articles on its platforms. Although agreements were eventually reached with local news publishers, these contracts expired two years ago. Meta also implemented similar restrictions in Canada three years prior, blocking users from sharing news links on Facebook and Instagram.