Did you know, Meta and Google could soon face a new tax in Australia, as the government considers ways to support and sustain local news media?
Thanks to The Guardian
In response to Meta’s decision to abandon deals with Australian media outlets under the news media bargaining code, a key parliamentary report has recommended introducing a “digital platform levy.” This tax would require tech giants like Meta and Google to contribute financially to support Australian journalism. Experts argue that a 2% levy on digital advertising could generate more funds for journalism than the current news media bargaining code.
The proposed levy is part of a broader effort to ensure media sustainability and curb the spread of misinformation, with Prime Minister Anthony Albanese emphasising that social media platforms should not be allowed to “ride free” on the work of traditional media.
While News Corp, Nine Entertainment, Seven West Media, and Australian Community Media dominate 84% of the newspaper market, Google and Meta control 70% of the digital advertising market. This creates an imbalance in the Australian media ecosystem, whereby crucial ad revenue is diverted away from local newspapers and into the hands of global digital platforms, posing a major threat to the future of Australian journalism. As more advertising dollars shift to these tech giants, traditional news outlets struggle to stay afloat, resulting in job losses, the closure of local newspapers, and the rise of “news deserts”, particularly in regional areas.
With Australia facing one of the most concentrated media markets globally, the proposed levy could reshape the media landscape by redistributing advertising revenue from tech giants back to the struggling news industry. If successful, it would safeguard public interest journalism, especially in regions where news outlets are disappearing. More importantly, it could set a global precedent for holding Big Tech accountable for its role in undermining traditional media.
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