Major US technology companies, including Amazon, Meta, X, Apple, and Google, are urging the Trump administration to take action against Australia. They claim that Australian laws are compelling US enterprises to pay “hundreds of millions” to local companies, which they argue disrupts trade conditions. The Computer and Communications Industry Association (CCIA) has formally expressed its concerns in a submission to the Office of the US Trade Representative, particularly in light of upcoming tariffs set to be enforced on April 2.
The CCIA opposes these tariffs but insists that the US government should address laws in other countries, such as Australia’s, which they claim financially burden US companies. The group’s submission emphasises the need to eliminate trade barriers rather than impose restrictions on foreign products and services. They warn that retaliatory measures can lead to unintended costs, increasing prices for both domestic manufacturing and exports.
The CCIA highlighted that Australia’s policies, specifically its News Media Bargaining Code, which mandates that designated digital platforms compensate local news outlets for content, have allegedly cost American firms around US$140 million annually. Furthermore, they cautioned that if Australia proceeds with a new “incentives” tax, these costs may rise further.
The statement from the CCIA raises awareness of the revenue extraction practices that Australia employs to fund its local news industry, which they describe as effectively subsidising Australian businesses at the expense of US firms. While the prospect of US tariffs on Australian technology exports has been floated, the potential effect on the US market is uncertain, especially since other Australian exports, such as beef and pharmaceuticals, account for a more significant portion of trade between the two nations.
At this point, it remains to be seen whether the US government will respond to these recommendations, yet the landscape of international digital trade continues to evolve against a backdrop of increasing scrutiny and negotiation over such regulatory measures.