Learning from Australia, Google and TikTok Cannot Act Arbitrarily
Jakarta, CNBC Indonesia - TikTok, Meta, and Google will be required to negotiate with Australian local media to pay for news published on their respective platforms. If they do not, they will face fines of up to millions of dollars.
The Australian government is proposing the News Bargaining Incentive in relation to this matter. Large technology companies could face a 2.25% tax imposition related to this issue.
The tax from the platforms will be given to news companies, aiming to enhance Australian journalism.
Communications Minister Michelle Ananda-Rajah explained that platforms should contribute to journalism. This is considering that the public can obtain news from those platforms.
“The public often gets news directly from Facebook, TikTok, and Google. We believe it is only right that large digital platforms contribute to the hard work of journalism that enriches their content and drives their revenue,” Wells said, quoted from Reuters, Wednesday (29/4/2026).
She also emphasised that the platforms must reach agreements with the media. If not, the companies must prepare to pay more money.
“Platforms should make agreements with news organisations. If they decide not to do so, then they will pay more,” she said.
The draft legislation stipulates that the tax levy will apply from 1 July during the 2025-2026 financial year. The provisions apply to social media or search services with local revenue exceeding A$250 million, covering Meta, Google, and TikTok.
The same rules do not apply to AI platforms. That technology will be regulated under separate legislation.
Wells also stated that her country is sovereign and will make decisions based on Australia’s interests, when asked about concerns over negative reactions from US President Donald Trump, who originates from the tech companies.
Trump is known to oppose digital services taxes on US tech giants. Threats of imposing tariffs have been shown to countries that implement tax imposition rules for platforms.
A joint statement from executives of Australia’s largest media companies called this step important to secure the future of news in the country. They also said there is a risk of unsustainable journalism if platforms do not pay for content usage.
Meanwhile, Meta opposes the claim that its platform takes news content from publishers. The company added that levies to fund media make the news industry dependent on government subsidy schemes.
Google also opposes the plan, while a TikTok spokesperson declined to comment.