Meta Calls Australia's News Tax Plan 'Grossly Unfair'
"Our position is clear: this law is poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry," said Meta, the $1.6 trillion parent company of Facebook, Instagram, and WhatsApp.
The pushback targets Canberra's proposed News Bargaining Incentive (NBI) — a levy that would fall on Meta, Google, and TikTok. Funds collected under the scheme "would be distributed to local news organizations based on the number of journalists they employ," according to an Australian broadcasting agency.
Under the Labor government's framework, Meta must either reach commercial agreements with Australian media outlets or face a tax bill worth up to 2.25% of its locally generated revenue. Australia, notably, is already the first country in the world to prohibit children aged 16 and under from accessing social media platforms.
The Silicon Valley giant contended that the legislation "will leave Australian journalism dependent on a government-administered subsidy regime while doing little to help smaller publishers and independent journalists."
"Our position is clear: this law is poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry," Meta said in its formal response to Canberra.
The company's resistance follows a pattern of retreat from Australian news commitments — earlier in 2024, Meta walked away from a 2021 agreement and shuttered Facebook News services in the country.
Meta further escalated its legal argument, contending that the NBI "violates the commitments Australia and the United States made in their bilateral Free Trade Agreement."
The proposal amounts to a "discriminatory, retroactive tax targeting a handful of foreign companies while competitors offering comparable services face no equivalent obligation," the company said, pointing out that firms including Microsoft, Snapchat, and OpenAI are reportedly exempt from equivalent obligations.
NBI a 'Critical Step' to 'Secure' Future of Australian News
Australian Communications Minister Anika Wells pushed back firmly against Meta's objections, defending the draft law as straightforward fairness.
"We believe it's only fair that large digital platforms contribute to the hard work of journalism that enriches their feeds and that drives their revenue," she said.
Australian media organizations have welcomed the NBI as a "critical step" toward securing the future of Australian news, lending the government significant industry backing.
"If digital platforms fail to pay for the use of the news content from which they profit, then journalism becomes unsustainable," said a statement issued by a broad coalition of news organizations, including the ABC.
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