The Australian government recently announced plans to introduce a "news tax" on social media and search engine platforms, requiring tech giants like Google and Meta to pay Australian media companies for displaying their news content on their platforms. This move aims to ensure news publishers receive fair compensation and balance the interests between traditional media and tech platforms.

Under the new rules, any social media platform or search engine with annual revenue exceeding AUD 250 million (approximately USD 160 million) will be subject to the "news tax." However, if these tech companies reach direct agreements with news publishers and pay fees, they can offset this tax. The policy aims to encourage tech firms to engage in commercial negotiations with media outlets, ensuring content creators are fairly compensated.

This initiative follows Australia's ongoing efforts to limit the market dominance of major tech companies. Earlier this year, the Australian government filed a lawsuit against platform X to curb violent content spread and introduced laws to combat online scams and misinformation.

However, tech giants have expressed dissatisfaction with the proposal. Meta voiced concerns that the policy may result in one industry being charged to subsidize another. "The new proposal does not reflect the reality of how our platform operates. Most of our users do not visit our platform to consume news, and publishers voluntarily post content because they see value in doing so," Meta's spokesperson explained. Meanwhile, Google warned that the Australian government's decision "could jeopardize the viability of commercial deals with Australian publishers."Australia has passed a law requiring American tech giants like Google and Meta to compensate media outlets for news links that generate traffic and advertising revenue. (Image/Source: Pexels)

In 2021, Australia passed legislation requiring tech giants like Google and Meta to compensate media companies for news content that drives traffic and ad revenue. At that time, Google and Meta agreed to pay over AUD 200 million (approximately USD 128 million) annually to Australian media outlets, including News Group, Nine Entertainment's Fairfax newspaper division, and smaller media organizations. However, Meta later announced it would cease signing such agreements after 2024.

This new policy may further heighten tensions between tech companies and traditional media. However, the Australian government hopes the measure will encourage fair cooperation between platforms and news publishers, supporting the sustainable development of the media industry.

Australia's "news tax" has drawn global attention, with other countries closely monitoring its outcomes and considering similar measures. This reflects growing concerns worldwide about tech giants' market influence and the challenges facing traditional media. Moving forward, striking a balance between protecting news creators' interests and maintaining free information flow will remain a key challenge for governments and tech companies alike.