The News Bargaining Incentive, passed earlier this month, applies to companies earning A$250 million or more in annual Australian digital advertising revenue – likely including Meta, Google and TikTok. Under the scheme, firms must either enter commercial agreements with Australian news outlets or pay a 2.75% charge on that revenue.
US technology companies and industry groups have attacked the measure as discriminatory. In April, the Trump administration labelled Australia's approach 'foreign extortion'. Now, some US Republicans are targeting Australia directly, calling the country a 'loser country' and demanding retaliation.
The University of Sydney's Fei Gao, who has written on the topic, previously argued the scheme resembles a 'digital services tax' – precisely the kind of tax US President Donald Trump has threatened to retaliate against. With the laws now in effect, the question is whether Washington will follow through on those threats.