America’s biggest tech companies are urging the Trump administration to take a stand against Australia’s digital regulations, arguing they unfairly target US businesses.
The Computer and Communications Industry Association (CCIA), representing industry heavyweights such as Meta, Google, Apple, Amazon, and X, has made a formal submission to the White House as part of a review of US trade policy.
At the heart of the dispute is the federal government’s proposed News Bargaining Incentive, which would require large social media and search platforms to either strike commercial deals with Australian media outlets or pay a separate charge.
The group argues that such policies create unnecessary barriers to trade. “The overriding goal should not be restrictions on foreign products or services, but rather the removal of barriers,” the submission states. However, it also acknowledges that “targeted, reciprocal measures”, such as tariffs, can be a powerful negotiation tool -though they come with unintended consequences.
Streaming quotas add fuel to the fire
The CCIA has also raised concerns over Australia’s proposed local content quotas for streaming services. The policy, designed to ensure platforms like Netflix invest in Australian productions, mirrors regulations imposed on traditional broadcasters.
While the government initially championed the plan, recent indications suggest a possible retreat due to potential conflicts with the Australia-US Free Trade Agreement.
With US trade officials evaluating “reciprocal tariffs,” the CCIA submission stops short of demanding new penalties on Australia but suggests they could be used as leverage.
Meanwhile, the Albanese government continues its efforts to shield Australian exports from further tariffs, following previous unsuccessful attempts to secure exemptions on aluminium and steel.
Put on ice
The federal government had been gearing up to introduce The News Bargaining Initiative, in January, but the policy rollout was been shelved until US trade tensions cool, according to the Herald.
At the time Google raised concerns about the proposed tax, cautioning it could jeopardise the viability of its existing commercial deals with local news publishers.
The tech giant pointed to the rise of alternative platforms like Snapchat, Microsoft, and Apple as increasingly dominant sources of news for Australians.
The trend was highlighted by findings from the Digital News Report Australia 2024, which revealed that nearly half (49%) of Australians access news via social media – a 4% increase from the previous year. Among Gen Z, the reliance on social platforms for news has surged by 17% in the same period.
The report highlighted the growing maturity of news consumption on platforms like TikTok and Instagram Reels, cementing short-form video as a key format for younger audiences.
Meta also hit back at the initiative, telling Mediaweek: “The proposal fails to account for the realities of how our platforms work, specifically that most people don’t come to our platforms for news content and that news publishers voluntarily choose to post content on our platforms because they receive value from doing so.”
Despite its ownership of LinkedIn – a platform heavily reliant on Australian news content – Microsoft appears to be exempt from the proposed tax. This discrepancy, Google argues, raises questions about the fairness and effectiveness of the new measure.
Will Washington act?
The CCIA’s lobbying efforts coincide with deepening ties between Silicon Valley and the Trump administration. X owner Elon Musk has emerged as a key figure in Trump’s economic strategy, while Meta’s Mark Zuckerberg and Amazon’s Jeff Bezos have strengthened relationships with the White House, aligning company policies with administration priorities.
Treasurer Jim Chalmers dismissed the tech sector’s position as expected, stating, “It’s self-evident they’re very close with the US administration. Our focus and our job is to make our case in the US as we have been doing.”