The Australian government is grappling with the challenging decision of how to respond to Meta’s cancellation of content deals, and may potentially force negotiations with the multinational company. Australian news publishers have expressed disapproval of Facebook owner Meta’s choice to terminate its news contracts on the platform, while the federal government remains committed to holding the multinational accountable for paying for content. The contracts that were set to expire in the coming months provided Australian media companies with up to $200 million (US$130 million), as reported by the government.
In response to Facebook’s statement that users were not engaging with news and political content on its platform, the government introduced the News Media Bargaining Code in 2021. This legislation created a framework allowing news publishers to establish commercial deals with Google and Facebook for their Australian content. Minister for Communications Michelle Rowland and Assistant Treasurer Stephen Jones emphasized the government’s determination to uphold the News Media Bargaining Code and are seeking guidance from Treasury and the Australian Competition and Consumer Commission (ACCC) on potential actions to take.
The government possesses the authority to “designate” Facebook, which would compel the company into arbitration with media organizations to determine compensation for news content. Seven West chief executive James Warburton advocated for Meta to be designated following its decision. Similarly, Nine CEO Mike Sneesby expressed disappointment in Meta’s actions and underscored the importance of fair compensation under the code. Additionally, the impact on small newspapers, such as those represented by Country Press Australia (CPA), was highlighted, with concerns raised about the undermining of democracy and public confidence in the media sector.
Various media outlets, including The Australian and The Australian Financial Review, criticized Meta’s decision, with headlines highlighting the perceived disregard for regulations and content creators. The Media, Entertainment, and Arts Alliance condemned Meta’s actions as damaging to the public’s access to trusted journalism and warned of job losses in the regions as a consequence. Meta’s announcement to remove Facebook News tabs from various countries, coupled with expired news deals in the United States and the United Kingdom, further exemplifies the ongoing challenges in the realm of digital content negotiations.