Meta will be forced into inking deals with Australian news publishers, or risk paying more significant taxes, as the government attempts to pull the belligerent social media giant into paying news publishers after a months-long standoff.
Dubbed the News Bargaining Incentive, the tax regulation will apply to social media giants and large search platforms which earn more than $250m in annual revenue, like ByteDance (which own TikTok), Meta (the parent company of Facebook, and Instagram) and Alphabet-owned Google.
Under the deal, social media companies that earn over the threshold will incur a yet-to-be-determined charge, which they can offset through the amount of the publisher deals, and a percentage uplift.
The exact charges and percentage figures will follow discussions with stakeholders, with a public consultation paper set to be released in early 2025.
Companies who are unable to offset the charge, or fail to bargain with publishers will need to pay the levy, which the government will then distribute to publishers.
The taxation model will begin in just weeks, from January 1, 2025, and will be cemented through legislation once parliament returns in February.
Thursday’s announcement follows about a year of negotiations after Meta announced it would not renew the $200m in deals under the News Media Bargaining Codes earlier this year, forcing a round of redundancies and industry-wide outcry.
Assistant Treasurer and Financial Services Minister Stephen Jones said the tax reforms were not designed to be revenue-raising, but force media giants to support Australian journalism.
“Digital platforms receive huge financial benefits from Australia, and they have a social and economic responsibility to contribute to Australians’ access to quality journalism,” he said.
“This approach strengthens the existing code by addressing loopholes that could see platforms circumvent their responsibility to pay.”
Communications Minister Michelle Rowland said the News Bargaining Incentive was an “important step” in supporting Australia’s news media industry.
“Large digital platforms have an important role to play in providing access to news for all Australians, and contributing to the sustainability of public interest journalism,” he said.
More to come
https://thewest.com.au/news/meta-to-be-forced-into-striking-deals-with-publishers-under-albanese-governments-news-bargaining-incentive-c-17060058
