Source : Perth Now news
A plan to force tech giants to compensate news outlets for their journalism could lead to higher tariffs for Australia, a US group allied with the Trump administration warns.
The federal government’s news bargaining incentive passed parliament on Thursday, after the Greens agreed to back the measures.
Under the changes, digital platforms will be required to pay a 2.5 per cent levy on their digital advertising revenue if they do not strike deals with Australian news outlets for their journalism.
US advocacy group Americans for Tax Reform says the proposal is unfair, calling on US President Donald Trump to increase tariffs on Australia as a result of the measures.
“Australia has found a new way to tax American success,” the group said in a statement.
“Canberra calls it support for journalism. It is a shakedown, and American companies are the mark.
“Rather than letting digital platforms and news publishers to negotiate freely, Canberra wants to put its thumb on the scale.
“The US Trade Representative can investigate and retaliate against foreign practices that burden American commerce, and this one checks every box.”
The US has placed tariffs of 12.5 per cent on Australian exports, increasing it from the original baseline of 10 per cent.
Prime Minister Anthony Albanese raised the issue of tariffs with the US president during a phone call between the two leaders on Friday.
Meta, the owner of Facebook and Instagram, has previously refused to renew deals with media companies following the expiration of existing ones
Communications Minister Anika Wells said she was confident tariffs would not be raised as a result of the laws, due to the relationship between Mr Albanese and the US president.
“Australia has long signalled news bargaining as a priority of our government … because we believe in a free press and it needs to be viable,” she told reporters in Canberra.
“When you think about sort of the threats to democracy that we have not just in Australia but across the globe, that’s more important than ever.”
The initiative increases the distribution scheme loading for regional journalists, small to medium publishers as well as media in under-represented communities from 10 per cent to 20 per cent.
Australian Associated Press has secured a five per cent share of all revenue collected by the government through the news bargaining incentive.
Assistant Treasurer Daniel Mulino said the incentive was designed to increase the number of deals struck between news outlets and tech giants.
“The message for platforms is simple: do fair deals now. Because if big tech benefits from Australian journalism, big tech should help to support,” he told parliament.
