Meta Cuts Ties with Australian News Deals, Drawing Criticism from Federal Government

In a move that has raised eyebrows, Meta, the parent company of Facebook, has decided to terminate its multimillion-dollar agreements with Australian news companies ahead of the scheduled expiration later this year. The company’s withdrawal from the existing agreement, which involved compensating news outlets for the content it used, has sparked disappointment from the Australian Federal Government.

Assistant Treasurer Stephen Jones expressed the government’s dismay, describing Meta’s decision as “an abrogation of responsibility” towards Australia’s news media sector. He emphasized the importance of Meta returning to the negotiation table in good faith, emphasizing the need for fair compensation for the utilized news content.

The Australian Government, staunchly supporting the news media bargaining code, is currently seeking advice from Treasury and the ACCC on the appropriate course of action. Communications Minister Michelle Rowland highlighted the potential impact on the media industry, estimating a $200 million blow and stressing the significance of compensating Australian journalists for their contributions to democracy.

Seven West Media managing director and CEO James Warburton called for Meta to be “designated,” affirming the need for constructive collaboration with the ACCC and Treasury to ensure compliance with the news media bargaining code.

In an official statement, Meta confirmed the removal of its news tab, Facebook News, in Australia and the United States starting in April. The company cited a significant decline in the tab’s usage over the past year, asserting that users primarily visit Facebook for social connections and diverse interests rather than news and political content.

Despite discontinuing support for the dedicated news feature, Meta clarified that news would still be accessible on the platform through the regular feed. Publishers will retain access to their Facebook accounts and pages, allowing them to share news articles and content.

This decision follows a global trend where politicians worldwide have urged Meta to compensate publishers for the content shared on its social network. Previously, Meta halted the promotion of news content for users in the UK, Germany, and France. The company has also refrained from making recommendations for posts related to politics or political issues.

It’s worth noting that Meta had previously suspended all links to news content on Facebook and Instagram in Canada to avoid complying with the country’s Online Streaming Act and making necessary payments.