Australia passes law to levy tech giants that fail to pay for local news

Australia has enacted a new law mandating tech giants to pay levies to local media outlets if they fail to negotiate commercial deals for using their news content on platforms. The News Bargaining Incentive imposes a 2.5 percent levy on advertising revenues unless a deal is reached. Proceeds from the levy will support Australian news organizations, contributing to user engagement and advertisers' revenues on the tech firms' platforms.

The levy applies to Meta, Google, TikTok, and Microsoft's LinkedIn, targeting companies with significant social media or search services in Australia and meeting a $250 million Australian dollar advertising revenue threshold. Platforms can avoid the levy by agreeing with at least eight different publishers before the end of their reporting period, with deal terms offsetting their levy liability.

Large publishers receive a 150 percent offset, while small and medium-sized outlets get a 200 percent offset per deal. No single deal can exceed 25 percent of a platform's levy liability. The legislation aims to encourage platforms to finalize commercial agreements before the end of their financial reporting period. This move marks an important step for Australian news businesses and journalism, following recent restrictions on gambling advertisements in parliament.