Would a tech tax be a fair way to make Google and Meta pay for the news they distribute and profit from?

Core Points - The News Media Bargaining Code in Australia, established in 2021, was the first legislation globally to compel Google and Meta to compensate news publishers for the news they distribute and profit from [1][2] - Approximately A$250 million is paid annually to news publishers under this code, which is considered a small fraction of what would be a fair price [1] - The code has influenced other countries to consider similar legislation, leading Google to negotiate deals with local publishers to avoid regulation [2] Group 1: Impact of the Code - The code has resulted in Google paying tens of millions of dollars to publishers worldwide, although the exact amounts remain undisclosed due to non-disclosure agreements [2] - Google relies on quality news to enhance its search attractiveness to users and advertisers, highlighting the importance of news content for its business model [2] Group 2: Resistance from Tech Giants - Google has actively campaigned against similar legislation in various countries, while Meta has threatened to withdraw news content from platforms in response to such regulations [3] - Both companies have successfully lobbied against proposed regulations in multiple markets, demonstrating their influence [3] Group 3: Future Considerations - The Australian government is contemplating a tech levy on companies as a potential next step, following the winding down of the current bargaining code [3] - The OECD has struggled to establish a global agreement on corporate taxes, leading many countries to implement or propose digital service taxes independently [4] Group 4: Taxation vs. Bargaining Codes - Digital service taxes have been implemented in several countries to fund local content, but none have been directly allocated to support journalism [5] - A tech tax could potentially address the power imbalances that exist between large social media firms and news publishers, unlike the current bargaining code [5] Group 5: Challenges Ahead - There are significant considerations regarding public support for allocating tax revenue to journalism and the potential for government misuse of these funds [6] - Tech companies are expected to resist any new taxes, as evidenced by ongoing legal battles over digital advertising taxes in the US [6] Group 6: The Need for Fair Compensation - The bargaining code aimed to ensure that platforms pay fairly for the intellectual property they utilize, which is crucial for sustaining quality journalism [7] - There is a call for democratic governments to publicly fund quality news media, alongside implementing digital taxes, to address the loss of advertising revenue to tech platforms [8]