Tech companies are weaponizing the US free trade agreement and threats of Trump administration retaliation to fight Australia's proposed law requiring them to pay news publishers.
The tech giants are leveraging geopolitical concerns in their campaign against the federal government's media bargaining code. By claiming the proposal violates the Australia-US free trade agreement, they're attempting to invoke potential trade consequences under a Trump administration.
The bargaining code would force major digital platforms to negotiate payment deals with news organizations for content used on their services. Tech companies argue the rules are commercially unfavorable and constitute unfair trade practices.
The strategy represents an escalation in the dispute, shifting focus from commercial arguments to international trade obligations. Industry players are banking on concerns about US relations to pressure the government into abandoning or significantly weakening the legislation.
Australia previously implemented similar media code requirements, making it a test case for other countries considering comparable regulations on tech platform behavior.
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