The Australian Government announced that it will impose a millionaire tax on technology giants such as Google, Facebook and TikTok, unless these platforms reach new agreements with the media for the publication of news content.
The measure, which will come into effect on January 1, 2025, will affect platforms with revenues in excess of A$250 million (approximately US$160 million).
Incentive for Media Business Arrangements
Stephen Jones, Minister for Financial Services, detailed that digital platforms will have to pay a levy based on revenue generated in Australia. This levy will include compensation for commercial agreements that platforms enter into with local media on a voluntary basis.
Jones noted that the government’s main intention is not to raise money, but to incentivize renewed agreements that will enable greater funding for journalism in Australia.
The new measure reinforces the 2021 bargaining code, which required platforms to pay for the publication of news content. However, those agreements will end this year, prompting the government to make this decision.
Meta (Facebook, Instagram and WhatsApp) and the Review of Commercial Agreements
In March of this year, Meta (Facebook, Instagram and WhatsApp) announced that it would not renew its contracts with Australian media, as well as with other countries such as Germany and France. This decision prompted the government to reconsider its strategy to ensure that platforms fund news media.
While previous agreements involved payments of up to A$200 million to a dozen media outlets, such as the ABC or the Nine Group, the new scheme seeks to ensure that the platforms contribute significantly to the financing of journalism in the country.
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