Canberra Criticizes Meta’s Decision as a ‘Dereliction of Commitment’ to Media Industry Sustainability.
Meta, the parent company of Facebook, has declared its decision to cease entering agreements to compensate news publishers in Australia, eliciting criticism from both the government and the media sector.
In a blog post on Friday, the tech giant stated that to maintain its ability to invest in products and services that enhance user engagement, it will not renew existing funding agreements with traditional news content and will refrain from introducing new Facebook products tailored for news publishers in the future.
Meta stated that existing agreements with publishers would remain unaffected until their expiration.
Furthermore, Meta disclosed its plan to discontinue its news tab in Australia and the United States in April, following its retirement in the UK, France, and Germany last year.
The company, headquartered in California, explained that these changes aim to better align investments with the products and services valued most by users.
Meta emphasized, “As a company, we have to focus our time and resources on things people tell us they want to see more of on the platform, including short-form video.”
The company noted a significant decline in the number of users accessing Facebook News in Australia and the US, citing a decrease of over 80 percent last year. Meta highlighted that users primarily utilize Facebook for social connections and exploration of personal interests, rather than news consumption.
Meta entered agreements with various traditional media outlets following the enactment of Australia’s landmark legislation in 2021, known as the News Media Bargaining Code. This legislation aimed to ensure that tech platforms compensate news publishers for the content shared on their platforms, addressing concerns that platforms like Facebook and Google were profiting from free news content while undermining struggling news organizations.
The Australian government swiftly criticized Meta’s announcement.
Australian Communications Minister Michelle Rowland and Assistant Treasurer and Financial Services Minister Stephen Jones have denounced Meta’s decision as a “dereliction of its commitment to the sustainability of Australian news media.”
In a joint statement, Rowland and Jones expressed disappointment, stating, “The Government has made its expectations clear.” They emphasized that Meta’s decision removes a significant source of revenue for Australian news media businesses, asserting that Australian news publishers deserve fair compensation for the content they provide.
Rowland and Jones announced their intention to seek advice on the next steps from the treasury and Australia’s competition watchdog.
Rowland and Jones affirmed, “We will now work through all available options under the News Media Bargaining Code.” They stated that the government will maintain dialogue with news publishers and platforms throughout this process.
The Media, Entertainment & Arts Alliance, Australia’s largest union for journalists, raised doubts about Meta’s commitment to journalism.
In a post on X, the union stated, “Facebook should compensate news organizations for profiting from their journalism – if it refuses to do so voluntarily, the government should utilize its powers to compel it.”
