Meta Strongly Opposes Australia’s New Media Funding Plan
Meta has strongly opposed the Australian government’s new plan that would compel digital platforms to financially support news media outlets. Under the proposed scheme, social media networks failing to reach agreements would be required to pay 2.25% tax on their total Australian revenues. If enacted, this new law is expected to provide local media with an annual revenue boost estimated between 200 million and 250 million Australian dollars. Kathmandu, 22 Jestha.
The tech giant Meta, parent company of Facebook, WhatsApp, and Instagram, has expressed strong objections to the Australian government’s latest initiative intended to ensure economic support for news media by digital platforms. Meta criticized the government proposal as poorly designed and fundamentally unfair. On Thursday, Meta claimed the introduced News Bargaining Incentive (NBI) scheme would hinder media outlets from innovating in ways needed to sustain a healthy media ecosystem.
In a report submitted to the government, Meta stated, ‘The NBI works in the opposite direction. It guarantees revenue irrespective of whether media organizations have sustainable business models. This protection from competitive pressures stifles necessary adaptation to changing times. At a moment when transformation is critical, it institutionalizes greater dependency.’ Meta further asserted that the government’s plan is economically incompatible, destined to fail, and violates commitments under the Australia–United States Free Trade Agreement (FTA).
The plan put forward by Australia’s center-left Labor government mandates that if social media and search platforms do not reach payment agreements with Australian media outlets for their news content, they must pay a 2.25% tax on their overall Australian revenue. Platforms that meet designated minimum advertising payment thresholds may qualify for a reduced tax rate of 1.5%. Revenues collected through this tax will be distributed based on the number of journalists employed by the news media. This proposal specifically targets major global players including Meta, Google, and ByteDance, parent company of TikTok.
Following the previous government’s News Bargaining Code, which Meta and others rendered ineffective by removing news content from their platforms, Prime Minister Anthony Albanese introduced this revamped plan in April. The government estimates that if the proposal is approved by parliament, it will generate between AUD 200 million and 250 million (USD 143 million to 178 million) annually for local news media. According to Australia’s media union, Media, Entertainment and Arts Alliance, more than 19,500 journalists have lost their jobs in Australia since 2008 due to significant declines in advertising revenue.