Australia Proposes 2.25% Levy on Meta, Google, TikTok for News Payments

Australia will impose a 2.25% levy on the local revenue of Meta, Google, and TikTok unless they sign deals to pay local media outlets for news on their platforms, according to Reuters. The proposed News Bargaining Incentive would direct levy proceeds to news companies, with platforms receiving larger offsets for agreements with smaller publishers. The plan replaces Australia’s 2021 news payment rules, after Meta briefly blocked news sharing before later signing deals with several local media firms that expired in 2024.

Levy Structure and Offsets

The plan gives platforms a financial incentive to sign commercial agreements. Those deals can cut the effective rate to 1.5% from 2.25% of Australian revenue. Canberra built in a larger offset for smaller publishers: agreements with them get a 170% offset, versus 150% for larger outlets.

Revenue Thresholds and Potential Charges

The rules cover digital platforms with more than A$250 million (US$179 million) in Australian revenue plus at least 5 million social media users or 10 million search users in the country. Meta and Google could face yearly charges of A$33.75 million (US$24.2 million) and A$202.5 million (US$145 million) respectively if they do not reach agreements.

Market Context

The measure reaches Meta as forecasts put it ahead of Google in global digital ad revenue in 2026, at US$243.46 billion. That 24.1% growth comes from AI ad tools plus Reels, Meta’s short-form video product, rather than news content. The charge leaves Meta weighing the cost against its push to end or scale back news agreements in Australia. The rule addresses an ad market concentration issue: Meta, Google, and Amazon are expected to take 62.3% of global digital ad spending by 2026.