An industry body representing big US tech companies has complained to the White House about Australia’s media rules.
These companies, including Google and Meta, are required to pay for news featured on their sites.
In its complaint, the Computer and Communications Industry Association called Australia’s rules “coercive” and “discriminatory”, estimating they cost Google and Meta $AU250 million a year.
It comes amid the threat of another round of tariffs against countries that impose “trade barriers” on American companies.
Tariffs
Since coming to power in January, U.S. President Donald Trump has imposed tariffs on other countries.
Tariffs are taxes on goods imported to the U.S. from overseas. They are paid by importing companies, and are intended to entice customers to buy domestic goods.
The U.S. has imposed a 25% tariff on Australian aluminium and steel.
During Trump’s first presidency, Australia was able to secure an exemption from U.S. tariffs.
Earlier this week, Trump told reporters a new round of tariffs will be announced on 2 April.
Describing it as “liberation day,” Trump said the tariffs will be applied based on each country’s “barriers” to American companies.
U.S. officials have confirmed these will match restrictions placed on American exports, called “reciprocal tariffs”.
Tech firms
The Computer and Communications Industry Association (CCIA) represents big U.S. tech companies.
Recently, it made a submission to the White House about taxes on digital products used overseas.
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The submission called out Australia’s 2021 News Media Bargaining Code.
Under the code, Meta and Google have to sign deals to pay publishers, including the ABC and News Corp, for using their content. The Daily Aus does not have one of these deals.
Meta threatened to pull out of the bargaining code last year, triggering a major review.
In a statement last December, Assistant Treasurer Stephen Jones said the current code “allows platforms to avoid their obligations by removing news.”
The code is now due to be amended with a media bargaining incentive, where Meta and Google would be able to access an “offset” for their payments to news organisations.
If they don’t make these agreements, the companies will still have to pay the Government.
Submission
The CCIA called Australia’s regulations “discriminatory” and “coercive,” saying it has cost Google and Meta $AU250 million a year since first coming into effect in 2021.
“With threat of the new “incentive” tax from the Australian Government, this cost is likely to significantly increase,” the CCIA said.
It also identified other countries, including France, the UK, and India, as saddling big tech firms with “trade barriers abroad”.
Response
In a statement to TDA, a Government spokesperson rejected the claim that Australia’s laws were “discriminatory” to the U.S, saying the laws apply to all platforms based overseas.
Shadow Foreign Affairs Minister David Coleman said: “Big Tech doesn’t get to decide what Australia does, we do.”
Greens communications spokesperson Sarah Hanson-Young said: “We won’t be bullied by Trump’s tech oligarchs”.
