Tech giants face tax threat in Australia: All you need to know

Australian PM says tech giants to face 2.25% compulsory levy 'if they refused to strike content deals with local news publishers'
An undated image shows different logos of tech giants, which includes Microsoft, Google, Meta, and AWS. — Getty Images
An undated image shows different logos of tech giants, which includes Microsoft, Google, Meta, and AWS. — Getty Images

Australia has revealed draft laws that would tax tech giants like Meta, Google and TikTok unless they voluntarily strike deals to pay local outlets for news.

Traditional media publications globally are in a battle for survival as readers increasingly consume their news on social media.

Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.

Australian Prime Minister Anthony Albanese stated tech giants Meta, Google and TikTok would be given a chance to strike content deals with local news publishers.

If they refused, they faced a compulsory levy that amounted to 2.25% of their Australian revenue, he said.

"Large digital platforms cannot avoid their obligations under the news media bargaining code," Albanese told reporters. "At this point the three organisations are Meta, Google and TikTok."

The three firms were singled out based on a combination of their Australian revenues and large numbers of domestic users.

However, Meta, Google and TikTok did not immediately respond to a request for comment.

The draft laws have been designed to stop the tech giants from simply stripping news from their platforms — something Meta and Google have done in the past.

"What we are encouraging is for them to sit down with news organisations and get these deals done," Albanese said. Meta had previously announced it would not renew content deals with news publishers in the United States, Britain, France and Germany.