Australia lays fiendish tax trap for Meta – with an expensive escape hatch
- Reference: 1733984114
- News link: https://www.theregister.co.uk/2024/12/12/australia_news_bargaining_incentive/
- Source link:
The new tax – [1]dubbed the "News Bargaining Incentive" – is a follow-up to 2021's [2]News Media Bargaining Code under which Australia forced Meta and Google to negotiate payments to local publishers, to reflect the value their news content adds to their search and social services. Those payments went straight to local publishers *
The two tech giants both signed up, but the Code requires occasional re-negotiation of payment plans.
[3]
Meta's negotiations are due soon, and The House That Zuck Built has signalled it won't negotiate a new deal. Instead, it could repeat its actions in Canada, where it no longer allows links to news – to avoid obligations under a law like the Code.
[4]
[5]
If Meta or Google stopped allowing links to Australian publishers' articles, they would be exempt from the Code.
Australian lawmakers have realized that, which is why the News Bargaining Incentive has two elements: a charge, and an offset.
[6]
The charge will be levied on entities covered by the Code that choose not to make payments to publishers. The Register understands the charge will be sufficiently high that it will hurt to pay it.
But if an entity covered by the Code chooses to do deals with local media under the Code, the offset kicks in – and defrays the cost of the charge! Australian media will get funds needed to pay journalists, Big Tech will cough up a sliver of global revenue, and – in theory – the Land Down Under will emerge as a slightly better place thanks to its residents being able to access quality info curated by pros.
[7]Australia passes law to keep under-16s off social media – good luck with that, mate
[8]Five Eyes infosec agencies list 2023's most exploited software flaws
[9]Doctor Who theme added to national sound archive to honor innovation, longevity
[10]Cybercrooks are targeting Bengal cat lovers in Australia for some reason
Entities that earn more than AU$250 million ($160 million) in revenue down under will be impacted by the scheme, which Australia's government has said won't be used as a revenue-raising measure.
The Incentive is not yet law. A consultation paper will appear in early 2025, and a federal election due by May means it could be some time before it reaches Parliament.
Big Tech will likely use that time to push back – fiercely – just as they did when the Code was floated in 2020.
[11]
Australia persisted, and many governments around the world watched on with interest. Meta and Google scored some significant changes to the Code, but nonetheless signed up and handed over cash. Some international governments tried to follow Australia's lead, but Meta in particular decided it didn't like this sort of law and decided not to play ball – just as in Canada.
So now we get another round of [12]"That's not a knife. That's a knife" as Australia and Big Tech brandish their blades of sovereign and market power.
The introduction of the Incentive is Australia's second big swipe at Big Tech in two weeks. The nation [13]effectively banned kids under 16 using social media by requiring operators to "make reasonable efforts" to identify youngsters and deny them service. Australia has therefore reduced Big Tech's ability to make money and found a way to make it spend more on local media. Now to see if it works. ®
* The Register is not eligible for these schemes, which we report to keep readers informed of evolving relations between sovereign states and Big Tech.
Get our [14]Tech Resources
[1] https://ministers.treasury.gov.au/ministers/stephen-jones-2022/media-releases/albanese-government-establish-news-bargaining-incentive
[2] https://www.theregister.com/2021/02/23/facebook_and_australia_do_a_deal/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z1rCVh54Ytz0ztFCF7VgHwAAAAQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z1rCVh54Ytz0ztFCF7VgHwAAAAQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z1rCVh54Ytz0ztFCF7VgHwAAAAQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z1rCVh54Ytz0ztFCF7VgHwAAAAQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2024/11/28/australia_children_social_media_ban/
[8] https://www.theregister.com/2024/11/14/five_eyes_2023_top_vulnerabilities/
[9] https://www.theregister.com/2024/12/11/doctor_who_theme_added_to/
[10] https://www.theregister.com/2024/11/06/bengal_cat_australia/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z1rCVh54Ytz0ztFCF7VgHwAAAAQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.youtube.com/watch?v=dSnosk4tWrg
[13] https://www.theregister.com/2024/11/28/australia_children_social_media_ban/
[14] https://whitepapers.theregister.com/
Hopefully they will just be able to stop displaying news from these "so called" news outlets, who do nothing but print and spread FUD, lies, rumours and misinformation.
No one could care less if they never saw and Australian "news" from these companies in their feeds.
Just more corrupt politicians doing the bidding of their media masters.
Well now
You seem barely educated enough to type that out (improperly), so I fear your opinion holds the weight of a flyspeck, or perhaps a dustmote. Perilously close to Planck scale, either way.
Nice to see that the Australian Government has "the balls" to tackle Big Tech...
Big Tech will probably try kicking them in the balls...
They'll try and get Trump to kick them in the balls. Zuck game him a million dollar donation for his inauguration and there will probably be more.
And you believe that Trump has any weight in Australia?
Do you consider Australians to be absolute wimps ?
What are your assertions based upon ?
How about making parents responsible
for whether their children use social media?
Re: How about making parents responsible
What ?
And be forced to actually educate them ?
Stop talking nonsense.
Re: How about making parents responsible
Parenting is a job for which no-one gets any training and at which few people excel, so I'm not sure it's terribly practical.
Re: How about making parents responsible
It's most commonly based on the fact that the parent themselves grew up , went through the various ups and downs of life, learned a lot, and then starts to hand that experience down to the child, giving practical advice, where possible , on how to negotiate some of life's pitfalls.
It doesn't require official schooling , it just requires some common sense.
As an Australia the best option is to just ban all the big social media companies and third party advertising. It will save tax payers billions and also help the environment and a lot of other positive benefits.
So essentially an Australian taxpayer subsidy for the newspapers. Just bypassing the actual taxman.
Paid for in good press for the politicians that introduced it.
Shame about the more useful things the big tech tax could have been used for.
I guess it depends whether you think that local journalism is more important than only seeing "news" which has been filtered for you based on....., well, who knows what criteria, but whatever they are it's unlikely that they'll be for your benefit. I'm not daft. I know that this law won't bring back local papers or prevent echo-chambers but standing up to the Meta is a good start IMHO.
Well ... at least they appear to have found a way to make Big Tech actually pay by placing them between a tax and a charge.
If it works, remains to be seen.
However, I salute the Aussies for their efforts to make Big Tech pay.
... the question what the extracted money is used for, is an independent question. An important one, though.
However, if Big Tech is allowed to skirt any taxation whatsoever, then any discussion on the money's use is moot.
You figure journalists should work for free then? If you don’t think they should get paid for their news, how exactly do you think news outlets make money? (Outside of advertising).
I hope it sticks
Making them pay for what they otherwise steal (let's call 'using it for free' for what it is) is an interesting exercise, and I suspect they will do everything they can to wiggle from under it.
From what I have picked up from the Honest Advertising crew I suspect wining and dining the right people will work best, so I don't expect it to have a big impact, sadly.