Meta accuses Australia of breaching FTA, invokes U.S. 'trade action'
Meta has accused the Australian government of violating a U.S.-Australia free trade agreement by proposing a 2.25% tax on tech platforms that fail to secure local media licensing deals. The company argues the tax is indefensible and threatens to escalate geopolitical tensions between the two nations.
Why it matters
This dispute highlights the growing friction between global tech giants and national governments over digital taxation and the sustainability of local journalism.
Meta accused Australia of violating a free trade agreement with the U.S. by proposing a new tax on certain tech giants which do not strike licensing deals with local media, escalating a dispute which has simmered for half a decade. The $1.6 trillion Facebook and Instagram owner said a proposal to tax platforms 2.25% of all Australian revenue, including revenue unrelated to social media, was “indefensible” and went further than actions which had prompted a response by the U.S. government. Meta has previously said it opposed the so-called news bargaining incentive, for which Australia’s centre-left government has published draft legislation. But its latest missive shows how the law risks stirring up geopolitical tension between the allies.
The article reports on Meta's claims and the government's legislative actions without taking a side, maintaining a neutral reporting stance.
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