Mike's Minute: Should we tax big tech for our news?

The latest cab off the rank in things Australia is doing that we suggested we might, is some sort of deal with tech around local news. 

Australia led off the batting with the social media ban that has been picked up and run with all over the world. 

It doesn't necessarily work, but people in various jurisdictions feel good enough about it and it may well be that enough people are affected for it to be judged some sort of success. We of course are yet to do anything, almost as though we don’t want to. 

It seemed odd to me that we hail the school phone ban but can't take the social media step. 

Anyway, tech needs to do deals with local Australian media or face a tax. Not that it's called a tax. It’s a "charge" and the charge will be spread about local media to help offset all the money big tech is hoovering up from taking their work and monetising it through ads. 

This won't work either of course. In fact, it will work even less than the social media ban has worked, but you clearly can't tell Albanese that. 

He also runs the risk of infuriating Trump, who is pro-American tech and companies in the firing line like Meta are of course, American. 

In the meantime, in Canada, who tried to do something similar, they have gone without Meta, or at least without news on Meta, for a while now. 

Because that’s the standard play book; tax us, we're off. And as one piece I read this week said, the sky hasn’t fallen in. 

I assume that if enough countries try to tax, even Meta might balk. But we are clearly a long way from that and it's entirely possible Meta and their ilk are so big they don’t care. 

Fun fact – less than 1% of posts on Facebook in Australia contain a URL from a domestic news site. That's a lot of regulatory hassle for no real engagement, so what do they care? 

I have always favoured government intervention when it actually achieves something. The cold, hard reality in this modern world is a single government can't contain, constrain, or manipulate a global tech giant – so why turn yourself inside out trying? 

No, it's not fair, but it's life. 

Canada have achieved nothing. Australia will learn the same thing. 

Maybe the fact we have done nothing is smarter than many realise. 

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Episode Transcript

Speaker 1 (00:00):
Latest cab off the rank in things Australia are doing
that we suggested we might is some sort of deal
with tech around local news Australia led off the batting
of the social media ban. Of course, that's been picked
up and run with all over the world. It doesn't
work necessarily, but people in various jurisdictions feel good enough
about it, and it may well be that enough people
are affected for it to be judged some sort of success. We,
of course, are yet to do anything, almost as though

(00:22):
we don't want to seem odd to me that we
hail the school phone ban but can't take the social
media step. Anyway, Tech need to do deals with local
Australian media or face a tax. Not that it's called
a tax, it's a charge, and the charge will be
spread about local media to help offset all the money
big tech is hoovering up from taking their work and
monetizing it through advertising. This won't work either, of course.

(00:43):
In fact, it will work even less than the social
media ban has worked. But you clearly can't tell Elbanezi that.
He also runs the risk of infuriating Trump, who is
pro American tech and companies in the firing line like
Meta are of course American. Meantime, in Canada, who tried
to do something similar, they've gone without Meta, or at
least gone without local news on Meta for a while now,
because that's the standard playbook. Taxes and we're often, as

(01:05):
one piece I read last week said, the sky actually
hasn't fallen in I assume that if enough countries try
to tax even Meta might balk. But we are clearly
a long way from that, and it's entirely possible. Meta
in their ILK are so big they simply don't care.
Fun fact, by the way, less than one percent of
posts on Facebook and Australia contain a URL from a
domestic news site. So you've got regulatory hassle, you've got

(01:28):
no real engagement side. What do they care. I've always
favored government intervention when it actually achieved something. The cold,
hard reality in this modern world is a single government
cannot contain, constrain, or manipulate a global tech giant. So
why turn yourself inside out trying? No, it's not fair,
but it's life. Canada have achieved nothing. Australia will learn

(01:50):
the same thing. Maybe maybe the fact we've done nothing
is smarter than many realize. For more from the mic
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