Australia Levies Tech Giants Over News Publisher Deals
Is this a lifeline for local journalism or protectionism targeting foreign tech giants?
Above: A laptop screen and social media icons displayed on a phone screen in Krakow, Poland on Feb. 4. Image credit: Jakub Porzycki/NurPhoto/Getty Images
The Spin
Narrative A
Australia's news bargaining incentive is a necessary step to make tech giants pay their fair share for profiting off journalism. A 2.75% levy on digital ad revenue ensures regional and independent media can survive against monopolization by some of the wealthiest companies on earth.
Narrative B
Slapping a discriminatory tax exclusively on a handful of foreign tech companies is bad policy posing as media salvation. The levy risks triggering the same trade fallout that got Canada frozen out of negotiations with the U.S. over its digital services tax. Propping up struggling mainstream outlets through a targeted penalty on foreign platforms is simply protectionism.
