Meta says Australian tech tax violates US trade deal
Meta has accused Australia of breaching a bilateral free trade agreement by proposing a 2.25% revenue tax on tech platforms that do not pay for local news content. The company warns the move could trigger US trade action as tensions rise over the regulation of American digital firms.
META PLATFORMS INC-CLASS A accused Australia of breaching a bilateral free trade agreement by proposing a 2.25% tax on total domestic revenue. This levy targets American technology firms that refuse to pay local media outlets for news content. The escalation risks triggering formal trade retaliation from the United States against a strategic geopolitical ally.
### Trade Violation Allegations Meta Platforms Inc-Class A stated in a blog post published on Thursday that the proposed tax violates commitments to grant American companies treatment no less favorable than local peers. Meta Platforms Inc-Class A argued the 2.25% charge on all Australian revenue is broader than digital services taxes that previously triggered United States trade actions.
