Australia passes law that could charge tech giants for news

Government establishes new rules for big techs to operate in Brazil; see main points Australia approved this Thursday (20) a law that could force large technology companies to pay millions of Australian dollars to the country's press outlets if they do not enter into commercial agreements to finance news production. The so-called News Bargaining Incentive provides for a charge equivalent to 2.5% of the advertising revenue of platforms that fall under the rule and do not comply with the requirements set out in the legislation. The measure applies to companies with relevant search or social media services in Australia and annual advertising revenue in the country exceeding 250 million Australian dollars (around US$178 million). Google, Meta, TikTok and LinkedIn are among the targets. The charge could affect companies such as Google, from Alphabet, Meta, TikTok and LinkedIn, from Microsoft. 'I didn't know how addicted my daughter was': Brazilians talk about the ban on social media in Australia The money raised will go to Australian press outlets. The government argues that platforms benefit from journalistic content by using it to increase user engagement and, consequently, advertising revenue. Internet civil framework: how the US and Europe treat 'big techs' BBC/Getty Images Companies, however, can avoid the charge if they close commercial agreements with media outlets. Companies will have to close agreements with at least 8 media outlets. To escape the charge, platforms must sign agreements with at least eight different media companies by the end of their reporting period. The contracts must finance the production of news or be related to the availability of journalistic content produced by the vehicles on the platforms. The amount paid in the agreements will be deducted from the amount that the company would have to pay as a charge. The legislation also establishes different incentives according to the size of the vehicle: expenses with large media companies will have a 150% discount, while agreements with small and medium-sized vehicles will have a 200% discount. Each individual contract, however, may represent a maximum of 25% of the total charge to which the platform would be subject. Australia had already created rules for platforms The new legislation increases Australia's pressure on large technology companies to share part of the revenue generated from the distribution of journalistic content. The Australian government stated that the approval of the law makes it clear to platforms that they must seek commercial agreements with media outlets. The measure was approved one day after the Australian Parliament also approved restrictions on betting advertising.