The Albanese government's news media bargaining incentive has sparked fierce opposition from major tech companies, who warn it could violate the US-Australia free trade agreement and provoke retaliation from a potential Trump administration. The proposed law aims to force platforms like Meta, Google, and TikTok to negotiate commercial deals with Australian media outlets or pay a 2.25% levy on local revenues.
Meta Leads the Charge
Meta, parent company of Facebook, Instagram, and WhatsApp, released its formal submission on Thursday, calling the incentive a "discriminatory tax" that is "poorly designed" and "grossly unfair." The company argued the levy would insulate publishers from competitive pressures and that news organizations voluntarily share content on Meta platforms for commercial benefits. Meta claimed the measure "plainly violates" the US-Australia free trade agreement.
US Tech Lobby Groups Join the Fray
The National Foreign Trade Council, representing US multinational tech firms, echoed Meta's concerns, stating the bill could conflict with trade rules prohibiting discrimination against US services and digital products. The Software & Information Industry Association warned the incentive would "likely run afoul" of Australia's obligations and be the "type of measure that the Trump administration has said it might retaliate against."
Australian Media Responds
News Corp Australasia executive chair Michael Miller criticized Meta's stance, saying it reveals "deep contempt for Australian law and standards of behaviour." Nine Entertainment CEO Matt Stanton called the bill unnecessary if tech companies simply adhered to existing Australian law, accusing them of "riding roughshod over the Australian public." Southern Cross CEO Rohan Lund emphasized that quality news is vital for democracy and that platforms must pay for content they profit from. Scott Purcell, co-founder of Man of Many, urged amendments to ensure funding reaches all newsrooms, not just major players.
Meta's Counterarguments
Meta dismissed the bill as "a tax on innovation dressed up as media policy," arguing that most users come to its platforms for creator-driven video content, not news. The company said it is not the role of digital platforms to rescue public interest journalism. TikTok, Google, and Microsoft were approached for comment but had not responded by publication time.
The consultation on the draft legislation closed late last month, with the government reviewing submissions. The outcome will be closely watched as a test of Australia's ability to regulate global tech giants.
