Unless they voluntarily enter into agreements with local media companies, social media platforms that generate more than US$160 million in revenue each year will be subject to taxes.
Under a new plan, Australia would compel Google and Meta to pay for news that is spread on their platforms and threatens to tax them if they don’t make agreements with local media.
“Digital platforms have a significant role to play. On Thursday, Communications Minister Michelle Rowland stated, “They must support access to high-quality journalism that informs and strengthens our democracy.”
With valuable advertising money being sucked up online, traditional media companies around the world are fighting for their lives.
Australia, which has previously resisted the notion, wants large tech companies to pay local publishers for promoting news links that increase traffic to their platforms.
Social media companies that generate over US$160 million in income annually in Australia will be subject to a tax of an amount that has not yet been determined and will be used to fund journalism.
However, if they willingly sign business contracts with Australian media businesses, they can avoid paying the tax.
It is Australia’s most recent attempt to control the tech behemoths.
Australia passed new legislation this month that forbids children under the age of sixteen from using social media.
Additionally, it has suggested imposing fines on businesses that do not stop the spread of misinformation and objectionable content.
