Grossly unfair’: Meta slams Australia’s bid to make platforms pay for news | Technology News
Meta, the parent company of Facebook, Instagram, and WhatsApp, has expressed strong opposition to the Australian government’s latest proposal to require digital platforms to provide financial support to media outlets. The company described the proposed News Bargaining Incentive (NBI) as “grossly unfair” and “poorly designed.”
In a submission to the government, the California-based tech giant argued that the initiative is “economically incoherent” and would not create a sustainable news sector. Meta further claimed that the proposals “plainly” violate the commitments Australia made under its free trade agreement with the United States.
The Mechanics of the News Bargaining Incentive
Under the plan introduced by the centre-left Labor Party government, search and social media platforms would be subject to a 2.25 percent levy on their Australian revenues if they fail to reach payment deals with Australian news outlets.
Platforms that secure a minimum number of commercial agreements could potentially reduce this levy to an effective rate of 1.5 percent. The resulting revenues would then be distributed to media outlets based on the number of journalists they employ.
The proposal specifically targets ByteDance (the owner of TikTok), Google, and Meta. Notably, the plan would not apply to AI developers that influence search traffic, such as OpenAI, the creator of ChatGPT.
A Battle Over Media Sustainability
The NBI is intended to replace the previous News Bargaining Code, a system that Meta and other tech firms managed to bypass by removing news content from their platforms. Prime Minister Anthony Albanese unveiled the new plans in April, stating his intention to “back Australian journalists and Australian news.”
Albanese emphasized that “local news matters to local communities,” noting that such stories cannot be told without the presence of Australian journalists. The government estimates that the scheme could generate between 200 million and 250 million Australian dollars (US$143m to US$178m) for local media.
Meta, however, argues that the NBI “insulates publishers from the competitive pressure to evolve by guaranteeing revenue regardless of whether they build sustainable business models.” The company warned that this “entrenches dependency” and that a strong media cannot be built on “punitive taxes” levied on foreign firms.
Potential Future Developments
Because the new scheme must be approved by parliament, its implementation remains subject to legislative voting. If passed, it could lead to increased legal friction between the Australian government and major U.S. Tech firms over trade violations.
Depending on the final terms, platforms may seek new ways to modify their services in Australia to avoid the levy, or they may be forced to negotiate a higher volume of commercial agreements to reach the lower 1.5 percent rate.
Frequently Asked Questions
What is the News Bargaining Incentive (NBI)?
It is a proposed Australian government plan that would impose a 2.25 percent levy on the Australian revenues of certain digital platforms if they do not make deals to pay Australian news outlets for content.
Which companies are targeted by these proposals?
The proposals specifically target Meta, Google, and ByteDance, but they do not apply to AI developers like OpenAI.
How would the funds from the levy be distributed?
Revenues generated from the levy would be distributed among media outlets based on the number of journalists they employ.
Do you believe government-mandated payments are the best way to ensure the survival of local journalism?