Meta Fights Australian News Tax
Meta Sharply Criticizes Australia's Proposed 2.25% News Levy as Unfair and Discriminatory
Key Points
Meta Australia published its criticism early the morning of its formal submission, with the blog post going live at 5am AEST on June 4.
In its formal submission, Meta argued the legislation “represents a significant departure from sound policy design and established international norms.”
Meta said the measure is a “discriminatory, retroactive tax targeting a handful of foreign companies,” adding: “while competitors offering comparable services face no equivalent obligation.”
Meta expanded its critique beyond news platforms by arguing the policy rewards “legacy media models over innovation,” calling it “a tax on innovation dressed up as media policy,” and explicitly tied its objection to revenue from Meta’s devices and properties including “WhatsApp and Quest virtual reality products.”
Meta has launched a blistering attack on Australia's proposed 2.25% news levy, calling it "grossly unfair" and "discriminatory" Yahoo Finance. The company published a blog post at 5am AEST on June 4, ahead of its formal submission to Australia's Treasury, labelling the plan "indefensible" Mumbrella.
Under the draft News Bargaining Incentive (NBI), Meta, Google, and TikTok would face a compulsory 2.25% tax on Australian revenue. Platforms that strike deals with local publishers would pay a lower effective rate of around 1.5%. The Australian government estimates the scheme could funnel $200–$250 million annually to media outlets Mumbrella.
Meta Calls Levy a Tax on Innovation, Not News
In its formal submission, Meta argued the legislation "represents a significant departure from sound policy design and established international norms" Mumbrella. The company said the levy is a "discriminatory, retroactive tax targeting a handful of foreign companies, while competitors offering comparable services face no equivalent obligation."
Meta pushed its argument further by saying the tax would hit revenue from products that have nothing to do with news — including WhatsApp, Quest virtual reality headsets, and smart glasses. It called the policy "a tax on innovation dressed up as media policy" Yahoo Finance. Meta's estimated annual liability, if no deals are struck, is roughly $33.75 million AUD.
Australia Designed the Levy to Close a Platform Loophole
The NBI replaces Australia's 2021 News Media Bargaining Code. Under that earlier law, platforms could avoid paying by simply removing news content — and Meta did exactly that. In 2024, it stopped renewing deals with Australian publishers and pulled back from news altogether Mumbrella.
The new law ties liability to a platform's Australian revenue and audience size — not whether it hosts news links. Any platform earning more than $250 million AUD locally qualifies for designation. Communications Minister Anika Wells put it plainly: "Platforms should do deals... if they decide not to, they will end up paying more."
Meta Raises US Trade Treaty as a Legal Weapon
Meta escalated the dispute on June 4 by formally accusing Australia of breaching the Australia-United States Free Trade Agreement EconoTimes. The argument rests on a "national treatment" principle — the idea that American companies are being treated worse than Australian firms offering similar services, who face no equivalent tax.
The White House has previously described similar levies as "foreign extortion," raising the possibility of retaliatory tariffs if the bill passes EconoTimes. Prime Minister Anthony Albanese pushed back, saying: "We're a sovereign nation... my government will make decisions based upon the Australian national interest."
Google and Publishers Take Opposing Sides
Meta is not alone in its opposition. Google has also criticized the reform, arguing it unfairly targets search and YouTube while leaving AI platforms untouched, and calling for a "level playing field" Mumbrella. Google's potential annual liability under the levy is estimated at around $202.5 million AUD — far larger than Meta's exposure.
Australian publishers including News Corp, Nine, and Seven West have welcomed the measure as a lifeline for public-interest journalism Yahoo Finance. But critics note that under the 2021 code, 60–70% of the $200–$250 million annual flow went to the three biggest media conglomerates — while 450 journalists were still made redundant in 2024. The government plans to introduce legislation in mid-2026.
Sentiment
Mostly NegativePublishers
10
Articles
26
Reach
36
