Big tech to pay more if no deal reached with Australian media
Companies like Google will have to pay a higher percentage of their ad revenue to media companies if they fail to make a deal, but have won a key concession that protects the broader revenue of their business.
The Australian government has raised the levy for tech companies that fail to secure content agreements with local news organizations, increasing it from 2.25 to 2.5 percent of digital advertising revenue. This decision follows a concession granted to these companies, who argued the levy should only apply to their digital advertising profits, rather than their total revenue.
Despite the higher levy rate, the companies will ultimately pay less, as the levy will be calculated on a smaller portion of their earnings. The legislation is expected to be introduced to parliament within weeks. However, AI companies will remain exempt from the scheme. Assistant Treasurer Daniel Mulino emphasized the importance of compensating news organizations, stating that this measure aims to sustain a viable news production ecosystem.
The government also expanded the definition of journalists to include essential production roles and freelancers, as well as start-ups, with a portion of any raised funds going towards a grants program for small publishers and new entrepreneurs. Communications Minister Anika Wells highlighted the vital role journalism plays in a functioning democracy and the significance of supporting regional publishers through the doubling of the distribution of scheme loading.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
