Australia's News Bargaining Incentive faces US criticism

The Albanese government in Australia has finalized the News Bargaining Incentive, a legislation intended to raise up to $250 million from U.S.-owned tech firms to fund local media for journalism that appears on social platforms. The revised levy narrows the taxable base to digital advertising revenue earned in Australia, raises the rate to 2.5 % from 2.25 %, and expands coverage to include TikTok and LinkedIn, while allowing companies to offset the charge through individual, tax‑deductible deals.

The Trump administration has renewed its claim that the policy amounts to "extortion" of American companies and said it will continue to address the issue with trading partners. The tech industry, represented by the Computer & Communications Industry Association, described the changes as largely cosmetic and still discriminatory, arguing that targeting mainly U.S. firms to fund Australian news businesses violates the Australia‑U.S. free‑trade agreement. Meta (Facebook/Instagram) and Google have declined to comment, but their Washington representatives indicated they remain prepared to fight the levy.

Prime Minister Anthony Albanese is scheduled to visit the United States in September amid the growing pushback.