Meta has accused Australia of breaching the Australia-US Free Trade Agreement over a proposed levy on large technology companies that do not enter into payment deals with news publishers, escalating a long-running dispute over funding for journalism, according to a Reuters report.
In a blog post published on June 4, Meta said the proposed measure would unfairly target American companies and argued that it violates Australia’s commitment to provide U.S. firms with “treatment no less favourable” than that afforded to domestic businesses. The company also said the levy was “even broader than existing digital services taxes enacted by some governments, which resulted in the United States initiating trade actions.”
What Australia is proposing: The dispute centres on Australia’s proposed News Bargaining Incentive, released for consultation in April. Under the draft law, large platforms such as Meta, Google and TikTok could face a charge equal to 2.25% of their Australian-linked revenue unless they sign commercial agreements with news publishers. The proposal applies to companies with more than $250 million in Australian-linked revenue and substantial user bases.
The Albanese government introduced the proposal after the collapse of earlier agreements made under Australia’s 2021 News Media Bargaining Code. Meta had previously signed deals with publishers after briefly blocking news on its platforms in Australia, but later declined to renew the agreements, reportedly worth around $70 million, and reduced the availability of news content on its services
The Australian government said it designed the new model to stop platforms from avoiding payment obligations by removing news content from their services. It calculates the levy on a company’s broader Australian revenue base rather than only on revenue linked to news.
The government said it remained committed to the proposal and will return funds raised through the levy to the news industry.
Broader tensions: The dispute comes amid wider scrutiny of Australia’s regulation of mostly U.S.-based technology companies.
In November 2025, a U.S. congressional committee asked Australia’s eSafety Commissioner to testify about the country’s online safety laws, arguing that some Australian measures could affect speech involving American citizens. Large technology companies have also criticised other Australian regulations, including the country’s social media age-limit rules.
The debate over payments for news content is not unique to Australia. Similar tensions have emerged in Canada and other jurisdictions as publishers seek compensation from dominant digital platforms that benefit from news content and audience engagement online.
Read more: