Australia has expanded its demand that Big Tech companies pay for news content, raising the proposed charge from just over two percent to two and a half percent of digital advertising revenue, Bloomberg reported on Saturday. The updated bill also widens the scope to include professional networking platforms such as LinkedIn. The revenue threshold now targets companies earning at least A$250 million specifically from digital advertising through search or social media services in Australia.
Assistant Treasurer Daniel Mulino said the changes followed industry consultation on draft legislation that closed in May.
The original draft, unveiled in April, set the rate at 2.25 percent and targeted Meta, Google, and TikTok. The revised version raises that rate by a quarter of a percentage point and extends coverage to professional networking platforms, a category that would bring Microsoft-owned LinkedIn under the scheme for the first time.
The expansion to professional platforms marks a notable shift. The April draft focused on social media and search services, but the updated legislation broadens the definition to capture platforms where news content circulates among professional audiences. The move acknowledges that news distribution is not confined to consumer social feeds.
The revenue base has also been refined. The earlier draft applied the charge to “consolidated revenue attributable to Australia,” a broader measure that drew objections from tech companies who argued it taxed income unrelated to news.
The updated threshold targets digital advertising revenue specifically, though the 2.5 percent rate on that narrower base could still generate significant liabilities for platforms with large Australian ad businesses.
Meta has already accused Australia of breaching the US-Australia free trade agreement over the original proposal, calling it “grossly unfair” and warning that Washington could take trade action in response. The White House previously described the policy as “foreign extortion.” Whether the revised terms soften or harden that opposition remains to be seen, but the higher rate and wider scope suggest Canberra is not retreating.
The News Bargaining Incentive replaces Australia’s 2021 News Media Bargaining Code, which required platforms to negotiate deals with publishers or face mandatory arbitration. Meta responded to that earlier law by temporarily blocking news on Facebook in Australia before eventually striking commercial agreements. Those deals lapsed in 2024, and the platforms chose not to renew them.
The legislation is expected to be introduced to parliament later this year. Platforms that negotiate deals with Australian news publishers can offset the charge, with larger reductions available for agreements with smaller regional outlets.
If no deals are struck, the full 2.5 percent levy applies.
Australia is not alone in forcing the issue. Canada passed its Online News Act in 2023 under a similar rationale, and the EU’s Copyright Directive established neighbouring rights for press publishers in 2019. Australia’s approach remains the most direct, attaching a specific percentage rate rather than relying on arbitration or negotiation mandates alone.
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