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Meta Opposes Australia’s News Levy, Citing Free-Trade Concerns
Meta said the scheme would impose a 2.25% levy on its Australian revenue and unfairly shield publishers from market pressure.
On Thursday, Meta formally opposed Australia's draft News Bargaining Incentive, calling the proposed 2.25% revenue levy 'grossly unfair' and 'indefensible' in a formal submission and blog post.
The proposal aims to close a loophole from the 2021 News Media Bargaining Code, which previously allowed Meta to bypass payments by removing news content entirely from its platforms.
Under the draft laws, Meta, Google, and TikTok face a 2.25% revenue levy on Australian revenue, reducible to 1.5% through commercial agreements; Treasury estimates the scheme will generate up to $250 million annually for newsrooms.
Meta's submission warned the tax is broader than previous digital services taxes that prompted U.S. trade action, while the White House described the Australian policy as 'foreign extortion,' though no retaliatory measures have been imposed.
Communications Minister Anika Wells defended the plan as 'only fair,' arguing digital platforms should contribute to journalism that drives their revenue, as the government prepares to introduce legislation into Parliament later this year.