economy
Australia's tech shakedown targets American innovation
Australian lawmakers are considering a new scheme to regulate and to extract revenue from American technology. If enacted, it would impose a 2.25% levy on the Australian revenues of three major platforms unless they strike commercial deals with local news publishers, with the rate falling to as low as 1.5% if enough agreements are reached.
TL;DR
- Australia is proposing a new scheme to regulate and generate revenue from American technology companies.
- The scheme involves a levy of 1.5% to 2.25% on the Australian revenues of platforms like Meta, Google, and TikTok if they do not reach commercial agreements with local news publishers.
- The Australian government projects this policy will generate between $144 million and $179 million.
- This follows the 2021 'news media bargaining code,' which had unsatisfactory results, with Meta blocking news links in protest.
- Critics argue the proposed levy is an enforcement mechanism for politically favored business arrangements, not merely an incentive or tax.
- Meta has stated that a government-mandated wealth transfer will not create a sustainable news sector.
- The article argues that U.S. tech markets, free from heavy regulation, have become the most advanced globally.