Australia to Force Tech Titans to Pay for News

A new Australian scheme would slap a tax on Google and other major tech platforms that will be earmarked to pay for news. Josh Edelson / AFP/File
A new Australian scheme would slap a tax on Google and other major tech platforms that will be earmarked to pay for news. Josh Edelson / AFP/File
TT
20

Australia to Force Tech Titans to Pay for News

A new Australian scheme would slap a tax on Google and other major tech platforms that will be earmarked to pay for news. Josh Edelson / AFP/File
A new Australian scheme would slap a tax on Google and other major tech platforms that will be earmarked to pay for news. Josh Edelson / AFP/File

Australia will force Meta and Google to pay for news shared on their platforms under a new scheme unveiled Thursday, threatening to tax them if they refuse to strike deals with local media.
Traditional media companies the world over are in a battle for survival as precious advertising dollars are hoovered up online, AFP said.
Australia wants big tech companies to compensate local publishers for sharing articles that drive traffic on their platforms.
"The rapid growth of digital platforms in recent years has disrupted Australia's media landscape, and it is threatening the viability of public interest journalism," Communications Minister Michelle Rowland told reporters.
"It is important that digital platforms play their part. They need to support access to quality journalism that informs and strengthens our democracy."
Social media platforms with Australian revenue of more than US$160 million a year will be taxed a still-to-be-decided figure earmarked to pay for news.
But they can offset the tax -- or avoid paying it entirely -- if they voluntarily enter into commercial agreements with Australian media companies.
The Australian government indicated the parent companies of Google, Facebook and TikTok would be covered by the tax, which will come into effect next year.
Officials said Elon Musk's X would likely escape because its domestic revenue was too small.
Hundreds of Australian journalists have lost their jobs in recent years as newspapers are shuttered and media companies downsize.
In 2021, Google and Meta struck a string of deals with Australian newsrooms worth a combined US$160 million.
But Meta has indicated it will not renew its deals when they expire in March, arguing that news makes up a tiny portion of its traffic.
The tax will be designed to stop the tech giants from simply stripping news from their platforms, something Meta and Google have done overseas in the past.
A Meta spokesperson on Thursday said Australia was "charging one industry to subsidize another".
Latest salvo
The spokesperson said the "proposal fails to account for the realities of how our platforms work".
Australia's University of Canberra has found that more than half the country uses social media as a source of news.
Supporters of such laws argue that tech titans attract users with news stories and devour online advertising dollars that would otherwise go to struggling newsrooms.
Google and Facebook owner Meta have pushed back against efforts in other jurisdictions to compensate news outlets.
Google started removing links to some California websites earlier this year after the state indicated it would make them pay for traffic driven by news.
Facebook and Instagram have blocked news content in Canada to avoid paying media companies.
It is the latest salvo in Australia's efforts to reign in the tech giants.
Australia last month voted for new laws that will ban under-16s from social media.
It has also mooted slapping fines on companies that fail to stamp out offensive content and the spread of disinformation.



US Auto Sales Set to Modestly Rise in First Quarter as Tariffs Signal Bumpy Ride

New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
TT
20

US Auto Sales Set to Modestly Rise in First Quarter as Tariffs Signal Bumpy Ride

New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo
New vehicles are seen at a parking lot in the Port of Richmond, at the bay of San Francisco, California June 8, 2023. REUTERS/Carlos Barria/File Photo

US auto sales likely inched higher in the first three months of the year on steady demand, data from the carmakers will show on Tuesday, as the industry braces for the fallout of President Donald Trump's latest tariffs.

Market research firm Cox Automotive has estimated that US new-vehicle sales volume increased 0.6% to 3.79 million units in the first quarter from a year earlier.

"Automotive tariffs — now set to take effect on April 2 — might have pulled ahead some vehicle purchases in Q1," said Jessica Caldwell, head of insights at automotive data provider Edmunds.

General Motors pickup trucks and SUVs are expected to help it retain its top spot in the quarter, followed by Toyota Motor's North America unit and Ford, according to Cox, Reuters reported.

Electric-vehicle maker Tesla is also forecast to report a drop in first-quarter vehicle deliveries on Wednesday.

President Trump's move to levy tariffs on US auto imports is widely seen as weighing on consumer sentiment and forcing a rethink on purchases.

The tariffs could also reduce the number of lower-cost imported vehicles on the market, such as Ford's compact Maverick pickup truck, further straining affordability as the average new-vehicle price nears $50,000.

"The potential for higher inflation due to new tariffs at American borders will all potentially hold back new-vehicle sales in 2025," Cox said.

Caldwell said tariffs would likely create challenges for the industry in the second quarter and beyond and expects discounts to be "harder to come by".