Meta has criticized Australia’s proposal to require digital platforms to financially support news organizations, calling the plan “poorly designed” and “grossly unfair”.
The company, which owns Facebook, Instagram, and WhatsApp, said the government’s proposed News Bargaining Incentive, or NBI, would discourage innovation by guaranteeing revenue to publishers instead of encouraging them to develop sustainable business models.
Meta also argued the proposal is “economically incoherent”, claiming it would not create a sustainable news sector and could conflict with Australia’s free trade commitments with the United States.
Under the plan, major social media and search platforms would face a 2.25 percent levy on Australian revenues unless they strike payment agreements with local news publishers. Companies meeting a minimum number of deals could qualify for a reduced effective rate of 1.5 percent.
The proposal targets Meta, Google, and TikTok owner ByteDance, but would not apply to AI companies such as OpenAI, the creator of ChatGPT.
Prime Minister, Anthony Albanese, introduced the scheme in April, saying it would help support Australian journalism and local news. The government estimates the plan could generate between 200 million and 250 million Australian dollars annually for media organizations, pending parliamentary approval.
Australia’s media industry has struggled with declining advertising revenues, with more than 19,500 journalism jobs lost since 2008, according to the Media Entertainment and Arts Alliance.
