Meta Ceases Payment For News Content To Australian Publishers

Meta Platforms has announced its decision to cease compensating Australian news publishers for the content showcased on Facebook, sparking a renewed clash with Canberra, which had spearheaded global legislation mandating tech giants to negotiate licensing agreements.

Both news publishers and governments, such as Australia, contend that Facebook and Google unfairly profit from advertising revenue generated by news links shared on their platforms.

Meta has been progressively reducing the prominence of news and political content to prioritize other forms of engagement, stating that news links now constitute only a fraction of users’ feeds.

Meta disclosed its intention to eliminate a dedicated news tab on Facebook in Australia and the United States, citing similar actions taken last year in the UK, France, and Germany.

The government is consulting with the Treasury Department for guidance. Rod Sims, the former ACCC chair who played a pivotal role in crafting the legislation, described Meta’s policy reversal as self-serving.

He expressed concern about the societal repercussions of the decision, emphasizing that it diminishes the quality of journalism shared on social media platforms

As a result, “we will not enter into new commercial deals for traditional news content in these countries and will not offer new Facebook products specifically for news publishers,” the statement added.

The decision pits Meta against the Australian government and its 2021 law.

“The idea that one company can profit from others’ investment, not just investment in capital but investment in people, investment in journalism, is unfair,” Prime Minister Anthony Albanese told reporters.

“That’s not the Australian way,” he added.

 “This is Meta thumbing its nose at the Australian parliament,” he said.

According to the law enacted in 2021, the government is tasked with determining whether to designate a mediator to establish Meta’s fees and possibly impose fines if Meta refuses to cooperate. The majority of Meta’s agreements with Australian media outlets were initially set for a three-year duration, with expiration slated for 2024.

However, Meta is not compelled to remunerate news publishers if it restricts users from sharing news articles, as it did briefly in 2021. This policy mirrors its actions in Canada since 2023, following the implementation of similar legislation in that country.

Meta announced on Friday that publishers could continue to share news content on Facebook.

Also Read: Meta begins process to end news access in Canada

Tama Leaver, an internet studies professor at Curtin University, said Meta will be reluctant to escalate the dispute by stopping its users from posting news links in Australia and will more likely challenge the government in court if it intervenes.

“Meta is going ‘what are you going to do?’ and the Australian government has a real decision to make,” he said.

Australia’s biggest media outlets lambasted the decision, calling it an attack on the industry.

 “Meta is using its immense market power to refuse to negotiate, and the government is right to explore every option for how the Media Bargaining Code’s powers can be used,” said News Corp Australasia Executive Chairman Michael Miller.

Nine Entertainment CEO Mike Sneesby said the decision failed to acknowledge the value that the media firm, which owns the Sydney Morning Herald and Australian Financial Review mastheads and a free-to-air television channel, created for Meta.

While no deal values have been disclosed, Australian media outlets have reported Facebook’s deals are worth A$70 million ($45 million) a year to the industry.

Google’s Australian media licencing deals mostly ran for five years, expiring in 2026. A spokesperson said the company has already started negotiations for deal renewals.

Many governments around the world remain keen on protecting their local news industries from being elbowed out of the online advertising market Indonesia said last month it also plans to make large tech firms pay for news content.