CPI | Australia Targets Big Tech With New Levy to Fund Local News
PYMNTS | Australia Targets Big Tech With New Levy to Fund Local News
Australia Targets Big Tech With New Levy to Fund Local News
ByCPI | August 20, 2026
Australia is increasing the regulatory pressure on some of the world’s largest technology platforms, adopting a new levy designed to push companies including Meta Platforms, Alphabet’s Google, TikTok and Microsoft’s LinkedIn into commercial agreements with domestic news publishers
The legislation, known as the News Bargaining Incentive, imposes a charge equal to 2.5% of Australian advertising revenue on covered digital platforms unless they enter qualifying arrangements with news organizations, according to Reuters. The measure was passed by parliament Thursday
The policy adds another mechanism to Australia’s expanding effort to constrain the economic power of major technology companies. While the measure is structured as a levy rather than a conventional antitrust penalty, it targets an imbalance that has become central to global debates over digital competition: large online platforms’ ability to capture advertising revenue and user engagement around content produced by other businesses
According to Reuters, the rules cover companies that operate a “significant” social-media or search service in Australia and generate more than A$250 million ($178 million) in annual Australian advertising revenue. Meta, Google, TikTok and LinkedIn fall within the scope of the legislation
Companies can avoid the levy by signing commercial agreements with at least eight publishers before the end of their financial reporting period, Reuters reported. The agreements must contribute to news production or compensate publishers in connection with making their journalism available through a platform
The structure gives technology companies a financial incentive to spread payments across the Australian media industry rather than concentrate them with a single large publisher. According to Reuters, spending involving large news organizations receives a 150% offset against a platform’s levy liability, while qualifying spending with small and midsize publishers receives a 200% offset. No individual agreement can account for more than 25% of the company’s total liability
That formula could make smaller publishers particularly important in negotiations with the platforms. By offering a larger offset for spending with those outlets, the law effectively makes such agreements more valuable for companies seeking to reduce or eliminate their levy obligations
The government said platforms will have to complete eligible agreements before the end of their reporting periods for the payments to count against their liabilities Officials described passage of the measure as significant for the country’s news industry and journalism
The law also underscores Australia’s willingness to use regulation to reshape the relationship between dominant digital platforms and businesses that depend on them for distribution and revenue. Australia had previously proposed a separate digital-competition regime that would allow regulators to impose substantial penalties on large technology companies for conduct that restricts competition or makes it harder for consumers to switch services, Reuters reported in 2024. That proposal focused initially on areas including app marketplaces and advertising technology.
Governments elsewhere have likewise been pursuing rules aimed at curbing the market influence of major technology groups. European regulators have used the Digital Markets Act to impose obligations on companies designated as powerful digital gatekeepers, while India has considered its own framework targeting large digital businesses
Australia’s latest measure focuses specifically on the economics of news. Proceeds generated by the levy would be directed toward Australian news organizations, whose journalism contributes to engagement and advertising activity on digital platforms
For the technology companies, the legislation creates a relatively straightforward calculation: negotiate with publishers and use those payments to offset the levy, or potentially surrender a portion of Australian advertising revenue
The measure was approved a day after Australia’s parliament passed separate restrictions on gambling advertising, Reuters reported, adding to a series of regulatory interventions affecting media and digital businesses
Source: Reuters
