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Australia Passes Law to Charge Tech Giants That Fail to Pay for Local News

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Australia has passed new legislation that will require major technology companies to pay a 2.5% levy on local advertising revenue if they fail to reach commercial agreements with Australian news publishers.

The News Bargaining Incentive applies to companies including Meta, Google, TikTok and Microsoft’s LinkedIn if they operate significant social media or search services in Australia and generate more than A$250 million ($178 million) in local advertising revenue.

Platforms can avoid the levy by signing qualifying agreements with at least eight publishers before the end of their financial reporting period. Payments to news organizations will be credited against the levy, with stronger incentives for deals involving smaller and medium-sized publishers.

Spending with large publishers will receive a 150% offset, while agreements with smaller outlets will receive a 200% offset. The rules are designed to encourage technology platforms to financially support journalism while still allowing companies to negotiate commercial arrangements directly.

Revenue collected through the levy will be directed toward Australian news organizations, reflecting the government’s view that media content contributes significantly to engagement and advertising revenue on major digital platforms.

The legislation strengthens Australia’s broader effort to rebalance the relationship between technology companies and traditional media businesses as news publishers struggle with declining advertising income and increased competition from digital platforms.

Europe Squares Up to Big Tech, Risking Ire of Washington

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European governments are intensifying scrutiny of major social media platforms, responding to mounting public concerns over child safety and harmful online content. The move reflects a broader push to regulate digital platforms but risks escalating tensions with the United States, where many of these companies are headquartered.

Spain recently ordered prosecutors to investigate Meta, X and TikTok over the alleged spread of AI-generated child sexual images. Ireland has also opened an inquiry into X’s AI chatbot Grok over its handling of personal data and potential to generate harmful sexualised content.

Several European countries including France, Spain, Greece, Denmark, Slovenia and the Czech Republic are now considering restrictions on social media use by adolescents. Germany and the United Kingdom are exploring similar measures, citing growing worries about online addiction, abuse and declining academic performance.

These national initiatives highlight frustration among policymakers who believe EU-level responses may be too slow. Under the Digital Services Act, platforms can face fines of up to 6% of global annual turnover if they fail to tackle illegal content. However, enforcement remains politically sensitive.

U.S. President Donald Trump has warned of potential tariffs or sanctions if European regulations disproportionately affect American technology firms. Meanwhile, EU officials maintain that the bloc is acting to safeguard democratic systems and ensure responsible technology use.

Some European leaders have framed the regulatory push as part of a broader effort to reduce digital dependence on foreign platforms and strengthen regional technological sovereignty.

EU Considers Pausing Parts of Landmark AI Act Amid Pressure from U.S. and Big Tech

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The European Commission is considering pausing parts of its landmark Artificial Intelligence Act, following growing pressure from U.S. officials and major tech companies such as Meta and Alphabet, the Financial Times reported on Friday.

According to the report, the move comes after months of lobbying from Silicon Valley giants and warnings from the Trump administration that strict EU regulations could strain transatlantic trade relations.

A senior EU official told the FT that Brussels has been “engaging” with Washington on potential adjustments to the AI Act and related digital regulations as part of a broader simplification effort, which is expected to be adopted on November 19.

The AI Act, which became law in August 2024, is the world’s first comprehensive framework to regulate artificial intelligence technologies. It categorizes AI systems by risk level — from minimal to unacceptable — and imposes restrictions on areas like facial recognition, biometric surveillance, and generative AI transparency.

While a European Commission spokesperson had previously dismissed calls for delays, officials are now reportedly weighing temporary pauses for specific provisions, particularly those affecting companies developing large AI models.

An EU spokesperson told the FT that “various options” are being discussed but emphasized that the bloc remains “fully behind the AI Act and its objectives.”

The proposal reflects Europe’s balancing act between maintaining AI safety and innovation leadership while addressing geopolitical and trade pressures from the United States and industry stakeholders.