1 week ago
Australia Passes Law Requiring Tech Giants to Fund Local News
Australia made a new rule for some very large technology platforms.
The companies must make business agreements with local news publishers or potentially pay a levy.
The levy is 2.5% of their advertising revenue if they meet the required revenue threshold.
The rule applies to companies such as Meta, Google, TikTok and LinkedIn.
Platforms can avoid the levy by making deals with at least eight different publishers.
The deals must help produce news or make publishers’ news available online.
Agreements with smaller news organizations count more toward reducing the levy.
The government says the plan will support Australian news businesses and journalism.
Australia passed the News Bargaining Incentive on Thursday, August 20, requiring qualifying platforms to make commercial deals with local publishers or face a levy.
The levy is set at 2.5% of advertising revenue for platforms exceeding A$250 million in Australian advertising revenue.
The measure covers major platforms including Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn, as well as other platforms with significant social media or search services.
Platforms can avoid the levy by reaching agreements with at least eight publishers before the end of their reporting period.
Deals with small and medium-sized outlets receive a 200% offset, while deals with large publishers receive a 150% offset; each deal is capped at 25% of levy liability.
- Who
- The Australian government, local news publishers, and qualifying technology platforms including Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn.
- What
- Australia passed the News Bargaining Incentive, which can impose a 2.5% advertising-revenue levy on qualifying platforms that do not make commercial news agreements.
- Where
- Australia.
- When
- Thursday, August 20; the law was passed one day after Parliament approved restrictions on gambling advertisements.
- Why
- The government said the measure is intended to support Australian news outlets and journalism because their content helps drive user engagement and advertising revenue on technology platforms.
Key facts
- Law
- News Bargaining Incentive
- Levy rate
- 2.5% of a covered platform’s advertising revenue
- Revenue threshold
- More than A$250 million in Australian advertising revenue
- Named platforms
- Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn
- Avoiding the levy
- Agreements with at least eight different publishers by the end of the platform’s reporting period
- Offset rates
- 200% for deals with small and medium-sized outlets and 150% for deals with large publishers
- Individual deal cap
- Any single deal can account for no more than 25% of a platform’s levy liability
Quotes
Australian government
Official statement from the Australian government
“The legislation is here, and the message to platforms to pursue commercial deals is clear. Deals will need to be finalised before the end of a digital platform’s financial reporting period to be used to offset their liability in that period.”
CNBC TV 18
Sources
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