Meta alleges Australia’s proposed 2.25% revenue tax violates the U.S.-Australia Free Trade Agreement. The owner of Facebook and Instagram labeled the levy discriminatory, noting it exceeds previous digital services taxes that triggered U.S. trade actions.
The proposal targets tech giants like Meta, Google, and TikTok to compel payments for local journalism. This news bargaining incentive applies to platforms that do not sign licensing deals with Australian news media.
Meta describes the law as grossly unfair, arguing that news organizations already benefit from voluntarily sharing content on its platforms. The dispute intensifies a long-standing conflict over platform compensation for news content.