1-3-2024 (SYDNEY) Meta, the parent company of Facebook, has declared it will cease payments to Australian media organizations for news content, leading the government to accuse the social media giant of neglecting previous commitments. As part of a global trend away from news content, Meta will discontinue the Facebook News tab in Australia and not renew existing deals with news publishers, which were valued at hundreds of millions of dollars.
Explaining the decision, Meta stated that people primarily use Facebook for purposes other than news and political content. The move was anticipated, but it poses a significant challenge for Australian news outlets already grappling with financial difficulties.
Meta had previously announced similar decisions in the United States, Britain, France, and Germany, aligning with a broader trend of digital platforms refraining from paying for news. Governments worldwide had pressed Meta to contribute to news outlets to address the declining revenues faced by traditional media, with advertisers increasingly favoring digital platforms like Google and Facebook.
Three years ago, Meta’s commitment to pay for news prompted the Australian government to amend legislation regulating online platforms and their interactions with the news media. The decision by Meta to end payments has drawn criticism from Communications Minister Michelle Rowland, who expressed disappointment and hinted at possible retaliatory actions by the government.
Rowland accused Meta of neglecting its commitment to the sustainability of Australian news media, emphasizing that the decision removes a significant source of revenue for local news businesses. The government is exploring available options and consulting with the communications regulator to address the issue. Rowland reiterated the government’s dedication to fostering a robust, sustainable, and diverse media sector, crucial for democracy and social cohesion.
As the shift away from paying for news content gains momentum globally, Meta’s decision underscores the challenges faced by traditional media outlets and the ongoing struggle to find a viable economic model in the digital era.
