Meta, Google, X & Apple urge U.S. to oppose Australia’s media law

Meta, alongside major technology firms such as Google, Apple, and X, has called on the U.S. government to intervene in a dispute over Australian media laws that require digital platforms to compensate local news providers. The companies argue that the legislation unfairly targets U.S.-based technology firms and imposes what they describe as a "discriminatory tax" on their operations.

In 2021, the Australian government introduced the News Media Bargaining Code, which mandates that social media platforms and search engines pay for the use of news content, including links to publishers’ websites. The policy aims to address the financial impact of digital platforms on traditional media by redistributing revenue to local news outlets.

Both Meta and Google have consistently opposed the code. Meta briefly restricted Australian news content on its platforms in response before reaching agreements with local publishers. These agreements have resulted in approximately AUD 200 million in annual payments to Australian media organisations.

Pushback from tech firms

Despite previous agreements, Meta has sought to withdraw from these revenue-sharing deals, citing a shift in its content strategy that deprioritises news. In response, Australian authorities have proposed amendments to ensure continued payments, even if platforms cease distributing news content.

Tech companies, through the Computer and Communications Industry Association (CCIA), have submitted a request to the U.S. government, arguing that Australia’s law imposes an unjust financial burden on American firms. According to The Guardian, their submission describes the code as "a proposed coercive and discriminatory tax that requires U.S. technology companies to subsidise Australian media companies."

Trade and taxation considerations

The appeal to the U.S. government aligns with broader concerns over international trade and taxation. While Australian authorities argue that tech firms should contribute more to the local economy, companies such as Meta have already been scrutinised for their tax practices. In 2023, Meta reportedly paid AUD 42 million in Australian taxes based on AUD 1.4 billion in declared local revenue. However, officials estimate the company’s actual earnings in the country were closer to AUD 5 billion, with the majority routed through Ireland to benefit from lower tax rates.

A previous attempt by the Australian government in 2018 to enforce stricter tax rules faced resistance from the U.S., with the Trump administration opposing measures that could increase financial obligations for American firms.

Potential U.S. response

The Trump administration is currently reviewing the submissions from the CCIA and other industry representatives before determining its course of action. Given the broader trade policies of the U.S., which have included efforts to reduce regulatory burdens on American companies operating overseas, it remains to be seen whether Australia will be pressured to revise its approach.

In addition to Australia, Meta and other U.S. tech firms are also contending with regulatory challenges in the European Union, where strict data protection laws have led to substantial fines. With the U.S. government advocating for more favourable trade terms for American companies, regulatory frameworks such as Australia’s News Media Bargaining Code may face increased scrutiny.

The Australian government has not yet indicated whether it will amend the code in response to international pressure. However, the outcome of the U.S. review could have significant implications for future agreements between global technology companies and local media industries.