Australia has passed a law that will force Meta, Google, TikTok, LinkedIn and YouTube to financially support journalism or face government-imposed levy.
The law was passed by the country’s parliament and will require these companies to pay 2.75% of local revenues. They said this is to safeguard the future independent news, requiring tech companies to either strike direct funding agreements or contribute to a central levy.
The levy applies to companies that generate over AU $25 million in local ad revenue and operate a significant social media service or search engine in the country. The move comes amid growing concerns that digital platforms have profited from news content without adequately compensating creators.
The new law replaces old law of 2021, which required tech companies to pay for news. Under the new rule, these platforms must negotiate with publishers to pay for the use of their content.
Government officials argue the law is essential to ensure journalism remains viable in the digital age. It aim is to ensure all gaps are closed and publishers benefit from the contributions regardless of size.
Meta and TikTok have warned that mandatory levies could stifle innovation and limit users’ access to content, while media advocates have welcomed the move as a long-overdue correction to the imbalance between global tech giants and local journalism.