Meta has escalated its long-running dispute with Australia by arguing that a proposed tax targeting major technology platforms violates the bilateral Free Trade Agreement between the United States and Australia, potentially transforming a domestic media policy debate into an international trade issue.

The proposal would require large digital platforms that do not reach licensing agreements with Australian news organizations to pay a levy based on their local revenue. Meta argues that the measure unfairly targets foreign technology companies and extends beyond social media activities by applying to broader business operations conducted within Australia.

The conflict traces back to Australia’s landmark 2021 legislation requiring major platforms to negotiate payments with news publishers for content shared on their services. At the time, Meta temporarily blocked news content in the country before eventually signing agreements with several media organizations. After deciding to end many of those arrangements, the company now faces a new framework designed to replace direct negotiations with a tax-based mechanism.

Meta contends that the proposed system discriminates against American companies and could breach commitments requiring equal treatment under the U.S.-Australia Free Trade Agreement. The company also suggested that similar digital taxes elsewhere have triggered trade responses from Washington, implying the dispute could develop into a broader diplomatic issue.

Australian officials, however, maintain that the policy is intended to strengthen the sustainability of domestic journalism by ensuring that large digital platforms contribute financially to the news ecosystem from which they benefit. Revenue collected under the proposal would reportedly be redirected to support local media organizations.

The dispute reflects a growing global struggle over the relationship between technology platforms and news publishers. Governments around the world are increasingly seeking ways to require digital giants to compensate media companies, while technology firms argue that such measures distort competition and discourage innovation.

Beyond Australia, the outcome could influence how other countries approach platform regulation, digital taxation, and the balance between supporting journalism and maintaining open technology markets.