Australia has enacted a law requiring major tech platforms to either sign commercial deals with at least eight local news publishers or pay a 2.75% levy on Australian revenue. The levy applies to firms earning more than AU$250 million in local ad revenue and will be distributed to publishers based on journalist headcount, including freelancers. The law replaces a 2021 regime the government deemed ineffective after previous disputes led to temporary news blocks by platforms.
Australia Forces Tech Giants to Fund Local News or Pay a 2.75% Levy
Joey Csunyo/Unsplash
Australia has approved a new law that requires major tech platforms to either negotiate commercial deals with local news publishers or pay a levy equal to 2.75% of their Australian revenue. The measure — passed by both houses of parliament — is intended to ensure digital platforms contribute more directly to the journalism that helps drive user engagement and advertising value on their services.
What The Law Requires
Platforms such as Meta, Google, TikTok, LinkedIn and others must reach agreements with at least eight Australian news outlets by the end of each annual reporting period to avoid the levy. Any deals must support publishers' news production and will be credited against the levy the company would otherwise owe.
Who Is Affected
The levy targets companies that generate more than AU$250 million in Australian advertising revenue and operate a "significant" social media service or search engine in Australia. Revenue collected from the levy will be distributed to publishers; how much each outlet receives will be determined by the number of journalists it employs, including freelancers.
Background And Rationale
The new law replaces a 2021 framework that the government judged to be ineffective. When those earlier rules took effect, Meta briefly blocked users and publishers from sharing news on its platforms before negotiating deals with local outlets — agreements that expired two years later. Similar disruptions occurred in Canada when Meta temporarily restricted news links on Facebook and Instagram.
Reporting note: Reuters has covered the legislation and its expected distribution mechanism for publishers.
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