Australia’s proposed laws on AI, online content, and making platforms pay to use local content have angered US big tech firms.
Large tech firms—including Elon Musk’s X, Apple, Google, Meta, and Amazon are urging the U.S. government to take action against Australia over digital regulations they say threaten their profits.
At the centre of the dispute is Australia’s News Media Bargaining Incentive, a law designed to force social media platforms to pay for Australian news content they display.
Tech firms argue it is a discriminatory tax that unfairly targets U.S. companies—and they want the president to intervene.
A submission by the Computer & Communications Industry Association (CCIA), which represents Apple, Google, Meta, Shopify, eBay, Intel, Amazon, and Uber, warns that Australia’s law is part of a global trend of “coercive and discriminatory” regulations that cost U.S. digital firms billions.
The group is urging the Office of the United States Trade Representative (USTR) to take a strong stance against Australia, warning that failing to do so could set a dangerous precedent worldwide.
Tech Giants Warn of Global Ripple Effect
According to the CCIA, Australia’s revenue-sharing law alone has cost U.S. firms $140 million annually, though the only cited source for that figure is a broken three-year-old web link.
The group claims that digital services taxes (DSTs) and online regulations across Australia, the EU, and other markets could drain more than $10 billion from U.S. companies.
The submission also predicts tech firms will face up to $50 billion in compliance costs and fines in Europe alone, citing unverifiable sources.
US Trade Pressure on Australia
The tech industry is pushing for direct intervention, warning that if the U.S. does not act, other countries could follow Australia’s lead, making these policies the new global norm.
The CCIA argues that preemptive action from the USTR could stop the spread of such regulations before they take hold in other markets.
The U.S. government has not yet signaled any formal retaliation, but the push from Musk, Meta’s Mark Zuckerberg, Amazon’s Jeff Bezos, and other influential tech figures comes at a time when their influence in Washington is growing.
Australia’s Assistant Treasurer Stephen Jones denied that the country’s laws unfairly target U.S. firms.
“We don’t impose discriminatory laws—everything we’ve proposed in the digital space applies irrespective of the country in which the business operates,” he said.
Whether that argument holds sway in Washington remains to be seen. With Musk’s deepening ties to Trump and big tech’s expanding political influence, the risk of trade penalties or policy retaliation against Australia cannot be ruled out.