Meta has accused Australia of breaching its free trade agreement with the United States over a proposed tax targeting major technology companies that do not reach licensing agreements with local news publishers.
The company, which owns Facebook and Instagram, criticised the proposal requiring certain digital platforms to either compensate news organisations or face a levy equivalent to 2.25 per cent of their Australian revenue.
According to Meta, the measure unfairly targets U.S.-based technology companies and violates provisions of the bilateral trade agreement that require equal treatment for American and Australian businesses.
The dispute stems from Australia’s long-running efforts to compel digital platforms to compensate media organisations for news content distributed on their services. In 2021, Australia became the first country to introduce legislation requiring platforms and publishers to negotiate payments or face government arbitration.
Meta initially entered agreements with several Australian media organisations but later announced it would stop paying for news content. In response, the Australian government proposed replacing the previous framework with a tax-based model that would apply to companies including Meta, Google, and TikTok.
Australian authorities have defended the proposal, arguing that revenue generated from the levy would be redirected to support the country’s news industry.
The disagreement adds to growing tensions between global technology companies and governments seeking greater oversight of digital platforms and their role in news distribution.
