The White House has launched a critique of the Albanese government’s latest move to tighten Australia's news media bargaining code, labelling the proposed regulations as a form of “foreign extortion” against the American technology sector.
The escalating diplomatic friction follows Labor’s confirmation of plans to impose mandatory costs on tech giants that refuse to strike commercial deals with local news outlets.
Under the revamped framework, platforms opting out of voluntary agreements would be charged a proportion of their revenue, with the proceeds distributed to Australian media organisations to ensure the industry's long-term sustainability.
In a direct challenge to Canberra’s regulatory sovereignty, White House spokesman Kush Desai stated that US President Donald Trump remains "committed to defending America’s leading technology sector" from what the administration views as discriminatory digital taxes.
The friction extends beyond the bargaining code, as Washington continues to monitor Australia’s world-first social media ban for children under 16.
Prime Minister Anthony Albanese remained resolute in the face of potential trade backlash, asserting that Australia is a sovereign nation that will "make decisions based upon the Australian national interest".
Communications Minister Anika Wells argued the legislative "tweaks" are necessary because the original code, established in 2021, lost its efficacy after Meta allowed its $70 million annual agreements to lapse.
LinkedIn has been notably excluded from the new draft legislation, a move that comes just days after parent company Microsoft pledged a $25 billion investment in Australia’s AI infrastructure.
Public consultation on the proposal will remain open until shortly after the May budget.