Meta's Decision on News Publishers

In a recent blog post, Meta, the parent company of Facebook, announced that it will not be entering into new agreements with traditional news publishers in Australia and the U.S. The decision comes as the number of users accessing a dedicated news tab on Facebook in these countries plummeted by over 80% last year.

Changes to News Access on Facebook

Focus on User Preferences

Meta clarified that this move is a strategic effort to align investments with products and services that are most valued by its users. The company emphasized a growing preference for short-form video content and noted that news consumption is not a primary reason people visit Facebook.

Impact in Australia

The decision has reignited discussions in Australia regarding whether social media platforms like Meta should compensate news publishers for their content. Notably, Australia introduced a news media bargaining code in 2021, pressuring companies like Meta and Google to negotiate commercial agreements with publishers.

Australian Response

In response to Meta's announcement, Australian officials expressed disappointment, highlighting the financial implications for local news outlets. Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland criticized Meta's decision, asserting that Australian news publishers deserve fair compensation for the content they contribute.

These developments underscore evolving dynamics between tech giants and traditional media organizations as they navigate the digital landscape.

Meta's Commercial Deals with Publishers

Meta, previously known as Facebook, has been making commercial deals with various publishers, including News Corp, which is the publisher of The Wall Street Journal and Dow Jones Newswires. A significant three-year deal regarding Australian news was reached between News Corp and Meta in March 2021. Prior to this, News Corp had also struck a deal with Meta in the United States.

Expired Deals in the U.S. and U.K.

According to a blog post from Meta, the deals in the U.S. and the U.K. have already expired. However, existing agreements in Australia, France, and Germany will remain effective until their expiration date.

Concerns from News Corp Australasia Executive Chairman

Michael Miller, the Executive Chairman of News Corp Australasia, expressed concerns about Meta's market power and refusal to negotiate. He highlighted that the majority of news consumption on Facebook occurs outside of the Facebook News tab. Miller emphasized that Meta's decision could have a direct impact on the viability of small and regional publishers in Australia.

Calls for Good Faith Negotiations

Mike Sneesby, the chief executive of Nine Entertainment, which owns newspapers like the Sydney Morning Herald, urged Meta to engage in negotiations in good faith. He emphasized the undeniable value created on Facebook through the use of Nine's intellectual property and stressed the importance of these deals in the national interest.

Meta's Response and Global Impact

Last year, Meta responded to similar legislation in Canada by blocking access to news in the country. Meta highlighted that news content accounts for less than 3% of what users see on their Facebook feed worldwide.