Australia passes new law to fine tech giants that don't pay for local news
Australia’s parliament has passed the “News Bargaining Incentive” on Thursday, a law focused on top tech platforms like Meta, Google, TikTok and Microsoft, handing them a choice between signing paid deals with Australian news publishers or giving up 2.5% of their local advertising revenue to the government.
The levy is set to affect only firms with a “significant” search or social media service in the country alongside local advertising revenue worth over A$250 million ($178 million), according to The News and SBS. According to current figures, these requirements cover Meta, Alphabet’s Google, TikTok and Microsoft’s LinkedIn.
Terms set for the tech giants
To ensure the companies do not escape the 2.5% charge entirely via loopholes, however, the law has terms built-in so the funds are well distributed. These platforms are now required to sign agreements with at least eight separate Australian publishers before their financial reporting period ends, and none of the deals can be credited for more than 25% of what they would otherwise owe.
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