Meta has accused Australia of violating the Australia-US Free Trade Agreement with its proposed news levy targeting large tech firms, according to a blog post published on June 4. The levy would impose a 2.25% charge on Australian-linked revenue for companies that do not enter payment deals with news publishers. It applies to firms with over $250 million in Australian-linked revenue and significant user bases, including Meta, Google, and TikTok, per medianama.com.
The dispute arises from Australia’s draft News Bargaining Incentive, released for consultation in April. Meta argued the measure unfairly targets American companies and breaches Australia’s commitment to provide U.S. firms treatment no less favourable than domestic businesses. The company also noted the levy is broader than existing digital services taxes that previously triggered U.S. trade actions. The Albanese government proposed the levy after earlier agreements under the 2021 News Media Bargaining Code collapsed.
This move intensifies a long-running conflict over funding journalism in Australia. Meta had earlier signed deals with publishers after briefly blocking news content on its platforms in Australia but later declined to renew those agreements. The proposed levy aims to compel large platforms to support news publishers financially, reflecting similar efforts worldwide to address the economic impact of digital platforms on traditional media.
Meta’s statement on June 4 marks a formal escalation of the dispute, highlighting tensions between governments seeking to regulate digital platforms and the companies’ pushback based on trade commitments. The Australian government is expected to review submissions on the draft law before finalizing the measure, with significant implications for tech companies operating in the country.