Meta opposes Australia’s proposal to require platforms to pay for news content.

SYDNEY, June 4 — Tech giant Meta has criticised Australia’s “grossly unfair” proposal to require social media companies to pay for news content, saying it strongly opposes the draft legislation.

Traditional media outlets worldwide are facing growing pressure as audiences increasingly turn to social media for news consumption.

Australia’s plan seeks to require major tech platforms to compensate local publishers for news content that drives traffic to their services.

“Our position is clear: this law is poorly designed, grossly unfair, and will fail to deliver a diverse and sustainable news industry,” said Meta, the parent company of Facebook and Instagram.

“We are vehemently opposed to this legislation. It is discriminatory, economically incoherent, and will not deliver the sustainable news sector that Australian journalists and audiences deserve,” the company added.

The proposed law targets Meta, Google and TikTok, giving them the option to negotiate content deals with local publishers or face a compulsory levy of 2.25 per cent of their Australian revenue.

The three companies were selected based on their significant local revenues and large user bases in Australia.

Meta described the measure as a “discriminatory tax” applied only to a small number of foreign firms.

“Call it what it is: a discriminatory, retroactive tax targeting a handful of foreign companies while competitors offering comparable services face no equivalent obligation,” it said.

The draft legislation, introduced earlier this year, aims to address a gap that allowed platforms to use news content without compensation.

When similar rules were proposed in 2024, Meta responded by removing access to its “news” tab for Australian users.

The company has also previously declined to renew content agreements with publishers in the United States, United Kingdom, France and Germany.

Supporters of the policy argue that social media platforms benefit from news content by attracting users and generating advertising revenue that would otherwise support struggling newsrooms.

“Large digital platforms cannot avoid their obligations under the news media bargaining code,” Australian Prime Minister Anthony Albanese said in April, adding that journalism must carry “monetary value” and should not be used for profit without compensation.

A University of Canberra study found that more than half of Australians now rely on social media for news.

The draft laws are expected to be tabled in parliament later this year.

Australia has taken a leading role in global efforts to regulate big tech, including a December ban on social media access for users under 16 in a world-first move aimed at protecting children from online harms. — AFP