Major technology companies, including Apple, Meta, Google, Amazon, and Elon Musk’s X, have submitted a formal complaint calling on the Trump administration to address the “coercive and discriminatory” media laws in Australia.
Members of the Computer & Communications Industry Association (CCIA) reacted to a request from the Office of the United States Trade Representative, seeking “comments to assist in reviewing and identifying unfair trade practices and initiating all necessary actions to investigate harm from non-reciprocal trade arrangements.”
The U.S. Trade Representative (USTR) is tasked with formulating and coordinating U.S. international trade and direct investment policy and managing negotiations with other nations.
In correspondence sent to the trade chief on 11 March, CCIA’s trade policy manager, Amir Nasr, pointed out Australia’s News Media Bargaining Incentive as a primary example of the discriminatory taxation of digital goods and services.
This incentive is designed to support the Morrison government’s 2021 news media bargaining code, introducing a new levy on digital platforms that can be offset if they establish or renew agreements to compensate news publishers.
Nasr noted, “Australia’s extraction and redistribution of revenue from U.S. digital suppliers to local news businesses is said to cost U.S. firms [US]$140 million each year.”
The comments label Australia’s news media bargaining incentive as a “proposed coercive and discriminatory tax that mandates U.S. technology companies to subsidize Australian media firms.”
“Currently, the two companies affected by this law contribute AU$250 million annually through agreements coerced by the threat of this legislation. However, with the impending ‘incentive’ tax from the Australian government (rate yet to be determined), these costs are expected to rise significantly.”
The remarks also bring attention to Australia’s proposed mandates for U.S. online video providers to support the creation and production of Australian content.
“Businesses could be obligated to allocate between 10% and 20% of their local spending toward Australian content, with stipulations likely making it challenging for U.S. companies to meet the criteria.
“Australia’s online video streaming sector is projected to generate up to $2.3 billion in annual revenue, predominantly sourced from U.S. companies. Should the Australian government push forward with the 20% expenditure requirement it has proposed over the last year, such a move could jeopardize this revenue,” Nasr stated.
Nasr underscored that any effort to rectify the “non-reciprocal treatment of U.S. exports abroad” should not compromise U.S. companies’ exporting interests, supply chains, or domestic operations.
