Meta vs. Australia: Clash Over News Payments Sparks Tensions and Tab Closure
Meta, the parent company of Facebook, is ceasing payments to Australian news publishers for their content, causing dissatisfaction from the Australian government, which had implemented a law requiring tech giants like Meta to pay for news. Additionally, Meta is removing its news tab in both Australia and the U.S., citing reduced engagement with news and politics. The decision aligns with changing user preferences towards features like short-form videos, following a similar move in the UK, France, and Germany due to an 80% decline in News tab usage over the past year. Meta will no longer engage in new deals for traditional news content in these regions.
The government thinks the law is important to make sure big tech companies pay news organizations fairly. But Meta says the law doesn’t understand how much value news organizations get from being on its platform.
Media companies and groups are mad at Meta’s decision. A union for journalists says Meta is using “economic blackmail.” Another group representing newspapers in the U.S. and Canada says Meta is hurting the importance of original news reporting.
This problem shows how big tech companies and news organizations disagree on the worth of news content. News groups think they should get paid fairly, but tech companies say they bring traffic to news and shouldn’t have to pay for content.
However, the Australian government is contemplating legal recourse against Meta for halting payments to local media organizations for the use of their content on Facebook and Instagram. Prime Minister Albanese has expressed worries, stressing the need for action in the nation’s interest. The 2021 News Media Bargaining Code could be utilized to compel arbitration or impose financial penalties on Meta. Globally, the company has scaled back news coverage, citing reasons of user engagement and future investment plans.
Prime Minister Albanese remarked that the decision contradicts the Australian way, stressing the importance of adequately funding a properly functioning media. Taking content without compensation is deemed unacceptable, especially given the significance of journalism.
Communications Minister Michelle Rowland and Assistant Treasurer Stephen Jones reached out to news media companies, assuring them that the government would utilize all available measures under the news media bargaining code. They highlighted that this concerns not just a small startup but a powerful and influential company.
To sum up, Meta stopping payments to Australian news publishers and ending its news tab has made things worse with the Australian government. Meta says the law doesn’t understand the value of news content, but critics say Meta is hurting the news industry.
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