In new draft laws, social media companies, including Meta, Google and TikTok will first be given a chance to strike content deals with local news publishers, and if they refuse, will face a compulsory levy that amounts to 2.25 per cent of their Australian revenue.

Two major lobby groups representing US tech giants say the News Bargaining Incentive is the latest policy that could dampen investment in Australia.

A plan to force Meta, Google and TikTok into compensating Australian media companies has drawn the unfiltered ire of Mark Zuckerberg’s $2.1 trillion giant.