Meta Chooses Not to Renew Multi-Million Dollar Commercial Deals with Australian News Outlets

Meta, the parent company of Facebook, has announced that it will not renew commercial deals with Australian news media companies worth millions of dollars. These deals, initiated three years ago in response to the News Media Bargaining Code, required tech giants to pay for displaying news on their platforms. The agreements, set to expire in the coming months, had provided up to $200 million to Australian media companies, including the ABC and Nine.

In a statement, Facebook asserted that users on its platform were not primarily seeking news and political content, prompting the company to redirect its investments elsewhere. Meta clarified that it would not block access to Australian news content once the deals lapse, as it briefly did in 2021 during negotiations with the federal government over the legislation.

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The Australian federal government retains options for response, including the power to “designate” Facebook, compelling it to enter arbitration with media companies to determine compensation for news content. Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland stated that they are exploring their options in light of Meta’s decision.

The ABC utilized funds from its commercial deals with Meta and Google to create 60 regional jobs. Minister for Communications Michelle Rowland expressed concern about the impact on the ABC’s ability to provide quality news services and is working with the government to address the financial challenges resulting from the loss of revenue.

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Prime Minister Scott Morrison criticized Meta’s decision, stating that it contradicted the “Australian way” and emphasized Australians’ right to know that foreign companies should not appropriate information without cost.

In response to Meta’s announcement, government officials labeled it a “dereliction of commitment” to the sustainability of Australian news media. They are seeking advice from Treasury and the competition watchdog on appropriate next steps under the News Media Bargaining Code, which includes the option for designation.

Various industry figures, including Seven West CEO James Warburton, called for Meta to be designated under the code. The government is urged to use every available tool to address what is perceived as weak leadership in dealing with Meta’s decision.

Nine CEO Mike Sneesby emphasized the value exchange between Nine and Meta, stating that regardless of Meta’s decision, the value created on their platform through the use of Nine’s intellectual property is unquestionable and growing. Nine intends to continue advocating for fair compensation and strong regulation of big tech companies influencing democracy.