Meta Shares Jump 4.24% Amid Australia Tax Dispute Escalation

On June 4, Meta shares rose 4.24% to 622.98 while Alphabet fell 0.79% to 358.99 after Meta accused Australia of breaching the US-Australia Free Trade Agreement with a proposed 2.25% tax on platforms' total Australian revenue. The draft law, expanded to cover Meta, Google and TikTok, goes beyond prior digital services taxes and could trigger US trade action. The conflict builds on Australia's 2021 news-negotiation law and Meta's 2024 decision to stop paying for news, amplifying regulatory uncertainty for US tech firms and highlighting investor sensitivity to cross-border policy risks.