Australia is facing pushback from a major trade group representing Google and Meta, which argues that the plan to force tech giants to financially back local journalism could be an unlawful tax that violates the Australia–United States Free Trade Agreement.

The government insists it will proceed with the policy, saying it aligns with trade obligations and is advancing through consultations and policy development.

The National Foreign Trade Council raised concerns to Treasury last December about the policy’s legality and whether it complies with international trade commitments.

Meta declined to comment on the submission, while Google did not respond to questions about the submission or its position in this matter.

Responses from Meta and Google diverge: Meta criticizes the policy’s approach and notes that users don’t primarily come to its platforms for news, whereas Google has publicly supported journalism and renewed several News Showcase agreements in Australia.

The policy is framed as part of broader efforts to strengthen Australia’s local media ecosystem by capturing revenue generated by large tech platforms.

US–Australia trade tensions and tariff considerations influence Australia’s push, with ministers and officials coordinating with the US on exemptions and tariffs, including planned talks in the United States by Don Farrell.

The government is pursuing a policy called the News Bargaining Incentive, which would require platforms earning over $250 million annually to participate in a charge that can be offset by media deals, even if those platforms do not carry news.