Australia Passes Law Taxing Tech Giants Failing To Pay For News
· World · Economic Times, Reuters, The Hindu
Australia has enacted legislation that imposes a 2.5% levy on the advertising revenue of major digital platforms that fail to secure commercial agreements with local news publishers. The law applies to companies such as Meta, Alphabet's Google, TikTok, and Microsoft's LinkedIn, provided they operate significant search or social media services in Australia and generate local advertising revenue exceeding A$250 million. Platforms can bypass the tax by finalizing deals with at least eight different local publishers before the end of their financial reporting period. The legislation allows for offset credits, with spending on large publishers carrying a 150% offset and small-to-medium outlets carrying a 200% offset. Proceeds from the scheme are intended to support Australian news outlets that contribute to platform engagement.
Why it matters
The law forces major global tech firms to directly fund local journalism in Australia or face a mandatory tax, potentially reshaping the commercial relationship between digital platforms and traditional news media.
Read the original report — Economic Times
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