Meta hits out at Labor's plan to make tech giants pay for news

Tech giant Meta has strongly condemned the Australian government's proposed News Bargaining Incentive, labeling it a "grossly unfair" and "discriminatory tax." The plan mandates that social media companies pay for the news content they host, with digital platforms facing a tax of up to 2.25% of their Australian revenue if they fail to strike deals with local news organizations.

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Our position is clear: this law is poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry.

In a blog post, Meta, the parent company of Facebook, Instagram, and WhatsApp, stated its firm opposition to the legislation. The company argues that the law is "poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry." Meta contends that the legislation is "discriminatory, economically incoherent" and will not achieve its stated goal of supporting a sustainable news sector for Australian journalists and audiences. The law specifically targets Meta, Google, and TikTok, based on their Australian revenues and user numbers, while excluding platforms like Microsoft and Snapchat.

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We are vehemently opposed to this legislation.

Meta asserted that the tax is discriminatory because it is applied only to a select group of foreign companies, while competitors offering similar services face no comparable obligations. Google has echoed these criticisms, noting that it already has commercial agreements with over 90 news businesses and 226 outlets in Australia. The proposed legislation aims to address a loophole that allowed tech companies to remove news content from their platforms without payment, a move Meta previously employed in the US, UK, France, and Germany.

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It is discriminatory, economically incoherent, and will not deliver the sustainable news sector that Australian journalists and audiences deserve.

Communications Minister Anika Wells defended the plan, describing it as "only fair" given that many Australians now access news through social media. She stated, "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." Wells added that platforms should engage in direct deals with news organizations, warning that failure to do so would result in higher payments. Australian media organizations have referred to the bargaining incentive as a "critical step" toward ensuring the sustainability of the news industry.

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It is a discriminatory tax, applied only to a handful of foreign companies.