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Meta has condemned an Australian initiative to levy a new tax on social media giants for utilizing news content, labeling the proposal as "grossly unfair."
The $1.6-trillion corporation behind Facebook, Instagram, and WhatsApp argued that the legislation is fatally flawed and will ultimately fail to foster a sustainable media sector.
The backlash came in response to Australia's proposed News Bargaining Incentive (NBI), which aims to impose a financial levy on Meta, Google, and TikTok.
Under this plan, funds gathered by Canberra would be redistributed to local media entities depending on their total employment of journalists, as reported by the Australian Broadcasting Corporation (ABC).
The Labor government's framework dictates that Meta must either negotiate directly with local news outlets or absorb a tax penalty reaching up to 2.25% of its total revenue earned within Australia.
The Silicon Valley giant contends that the policy will trap domestic journalism into relying on a state-run subsidy system while offering minimal support to independent creators and local publishers.
This stance was codified in Meta's formal brief to Canberra, where it reiterated its objections. The friction follows Meta's decision earlier in 2024 to pull out of a previous 2021 pact and shut down its dedicated Facebook News features in the country.
Furthermore, Meta claims that the NBI directly breaches the bilateral Free Trade Agreement terms established between the United States and Australia.
The firm blasted the measure as a retroactive, discriminatory tax levied against a select group of overseas companies, pointing out that rivals like OpenAI, Microsoft, and Snapchat face no similar financial constraints.
Conversely, Australian Communications Minister Anika Wells backed the regulatory framework, emphasizing its fairness.
Wells argued that tech conglomerates should naturally compensate for the professional journalism that populates their feeds and generates their commercial revenue.
Domestic news entities have strongly endorsed the NBI, describing it as a vital intervention to preserve public interest reporting.
A joint statement from a coalition of publishers, including the ABC, warned that failing to compel digital platforms to pay for content will render journalism completely unsustainable.
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