💰Australia Drafts New Law for Meta, Google to Pay A$250M for News
Meta and Google face new taxes on Aussie revenues unless they fund local journalism
TL;DR
Australia's government unveiled draft legislation requiring platforms like Meta and Google to either pay a 2.25% levy on their Australian revenue or strike deals with local news publishers, potentially generating A$250 million for journalism.
Australia has introduced the News Bargaining Incentive (NBI) law, which mandates companies such as Meta, Google, and TikTok to either pay a 2.25% levy on their Australian revenues or negotiate deals with local news publishers. This move aims to address previous flaws in similar legislation that allowed platforms to remove news content to avoid payments. The new law could generate between A$200 million and A$250 million annually for journalism, ensuring a more stable funding source for the industry. If passed, platforms have until July 1st to comply with the levy.
Key Points
Draft News Bargaining Incentive (NBI) law targets companies like Meta, Google, and TikTok in Australia
Platforms face 2.25% levy on Australian revenues unless they negotiate deals with local news publishers
Effective rate drops to 1.5% if enough agreements are reached, generating A$200-250 million annually for journalism
Compliance deadline set for July 1st, same day as the levy implementation
South Africa's direct deal model with Google, Meta, TikTok secures roughly $40M over five years
Why It Matters
If you're a local news publisher in Australia, this law could mean millions more in funding. The NBI aims to ensure platforms like Meta and Google can't avoid paying by removing news content, potentially stabilizing journalism's economic model.
Frequently Asked Questions
Why does this matter?
If you're a local news publisher in Australia, this law could mean millions more in funding. The NBI aims to ensure platforms like Meta and Google can't avoid paying by removing news content, potentially stabilizing journalism's economic model.
What happened?
Australia's government unveiled draft legislation requiring platforms like Meta and Google to either pay a 2.25% levy on their Australian revenue or strike deals with local news publishers, potentially generating A$250 million for journalism.
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