Media Outlets Urge Government to Take Action Against Meta Following Cancellation of Content Agreements
Facebook owner Meta’s recent decision to cancel content agreements with Australian news publishers has sparked controversy and prompted media outlets to call on the government to take action. The Australian government is now considering its response and may force Meta to negotiate and pay for content. This move by Meta has led to negative reactions from Australian news publishers and has raised concerns about the future of journalism in the country.
The cancelled content deals, which were set to expire in the coming months, provided Australian media companies with up to $200 million. Facebook justified its decision by claiming that its users were not primarily coming to the platform for news and political content. As a result, it announced that it would be deprecating the “news” tab in Australia and the United States.
However, the Australian government is determined to continue fighting for fair compensation for news content. The News Media Bargaining Code, introduced in 2021, allows news publishers to strike commercial deals with tech giants like Google and Facebook. Minister for Communications Michelle Rowland and Assistant Treasurer Stephen Jones emphasized the government’s commitment to the code and its intention to use its powers to ensure companies pay for the content they use.
Several media outlets have called for Facebook to be designated under the bargaining code. Seven West CEO James Warburton argued that Meta’s decision proves the need for this designation. Nine CEO Mike Sneesby also criticized Meta’s decision, stating that it fails to recognize the value of Nine’s journalism and unique content. Both CEOs expressed their willingness to work with the Australian Competition and Consumer Commission (ACCC) and Treasury to ensure fair compensation.
The cancellation of content agreements has severe implications for small newspapers as well. Country Press Australia (CPA), representing 230 regional and local newspapers, stated that this decision would significantly impact the news industry. CPA President Andrew Schreyer condemned Meta’s actions, highlighting the importance of local news outlets on Facebook pages, particularly during times of bushfires and floods. He argued that Meta’s claim that people do not visit its platform for news or political content is unfounded.
Media outlets have not held back in their criticism of Meta’s decision. The Australian newspaper, owned by News Corporation, ran a front-page headline calling Meta a “tech tyrant” and accusing it of going to war with Australia. The Australian Financial Review also used martial metaphors, describing the situation as war and criticizing Meta’s move as being in bad faith. The Guardian took a more moderate stance, describing Meta and Google’s response as “hissy fits” and warning that no news is bad news for everyone.
The Media, Entertainment, and Arts Alliance (MEAA), representing journalists and news producers, called Meta’s decision a damaging blow to the public’s right to be informed by trusted journalism. MEAA Media federal president Karen Percy criticized Meta for its arrogance and abuse of power. The Australian Broadcasting Corporation (ABC) also expressed concern since it used funds from commercial deals with Meta and Google to create regional jobs.
Meta’s decision to cancel content agreements is not limited to Australia. The company had already removed the Facebook News tabs from its sites in the UK, France, and Germany in September 2023. Additionally, news deals with the United States and the United Kingdom had expired prior to the recent announcement.
In conclusion, Meta’s cancellation of content agreements with Australian news publishers has sparked outrage and raised concerns about the future of journalism in the country. Media outlets are urging the government to take action and ensure fair compensation for news content. The government has vowed to use its powers under the News Media Bargaining Code and is seeking advice on potential steps to be taken. The impact of this decision extends beyond media companies, affecting small newspapers and regional jobs. The battle between tech giants and news publishers continues, with the outcome having far-reaching implications for the media landscape.
