Australia’s government has set a deadline for major technology companies to negotiate payments to local news publishers. The News Media Bargaining Code requires platforms like Google and Meta to reach agreements with media outlets for content use. Failure to comply will trigger a 2.25% digital revenue tax starting July 1, 2026.
The law follows years of disputes over how platforms profit from news while publishers struggle with declining ad revenue. In 2021, Australia became the first country to pass such a law. Since then, Google and Meta have signed deals with dozens of Australian publishers, including News Corp and Nine Entertainment. These agreements cover licensing fees for news snippets, links, and article previews displayed in search results and social media feeds.
The new tax applies only to companies with global annual revenues exceeding $750 million AUD and significant operations in Australia. Smaller firms are exempt. The government estimates the tax could generate $200 million AUD annually, funding public interest journalism. Critics argue the tax unfairly targets foreign tech giants, while supporters call it a necessary step to protect local media.
Negotiations must conclude by June 2026. If no deals are reached, the tax will take effect automatically. The law also allows publishers to take legal action if they believe compensation terms are unfair. Australia’s approach has drawn international attention as other countries consider similar measures.
Source: techcrunch.com