Meta's withdrawal from its agreements has prompted the Albanese government to seek new ways to sustain public interest journalism amid declining revenue.

The committee highlighted the necessity of creating a fund specifically aimed at supporting small and independent media outlets, particularly those in underserved communities.

The proposed digital platform levy would mirror similar taxes already in place in the UK and France, ensuring that social media companies contribute to journalism funding.

In addition to the levy, the committee's interim report suggests requiring social media platforms to carry news content and establishing a Digital Affairs Ministry for better regulation.

Senator Sarah Hanson-Young emphasized the importance of holding transnational tech companies accountable to Australian laws and ensuring they contribute to the communities from which they profit.

The Australian government is exploring a 'digital platform levy' on major tech companies like Meta and Google to support traditional news media.

This initiative follows a parliamentary committee's recommendation to investigate alternative revenue mechanisms, including the proposed levy, after Meta withdrew from a significant deal to compensate local news organizations.

The company's decision to abandon the agreement was part of the News Media Bargaining Code initiated under the previous Morrison Government, which also led to the removal of the Facebook News tab in Australia and the US.

Coalition MPs on the committee opposed the recommendations, arguing that the government was attempting to shift blame for its own failures in enforcing the News Media Bargaining Code.

The Opposition has criticized the Albanese Government for not taking decisive actions to resolve the ongoing dispute with Meta, suggesting that the committee's referral is a tactic to delay resolution.

However, the report faced criticism from opposition Coalition members, who defended the existing news media bargaining code and accused the government of failing to hold tech companies accountable.

The committee has also supported government efforts to regulate online misinformation and is preparing a final report that will address online safety.