Facebook owner Meta says it won't renew commercial deals with Australian news media companies worth millions of dollars.
Three years ago, the company signed deals with Australian news outlets following the introduction of the News Media Bargaining Code, laws which required tech giants to pay for displaying news on their platforms.
The deals were due to expire in the next few months and had provided Australian media companies, including the ABC and Nine, with up to $200 million, according to the government.
In a statement, Facebook said its users were not coming to its platform for news and political content and that it would invest its money elsewhere.
"This is part of an ongoing effort to better align our investments to our products and services people value the most," the statement said.
Meta will not block access to Australian news content once the deals lapse, as it briefly did in 2021 while negotiating with the federal government over the legislation.
The federal government has avenues to respond, including the power to "designate" Facebook, which would force it into arbitration with media companies to determine remuneration for news content.
Assistant Treasurer Stephen Jones and Communications Minister Michelle Rowland said they were considering their options.
The ABC used funds from commercial deals with Meta and Google to create 60 regional jobs.
Minister for Communications, Michelle Rowland said she had spoken with ABC managing director David Anderson on Friday.
"He reiterated that this funding is used, amongst other things, to support those 60 journalists," she said.
"It is important for him to ensure the ABC, as its managing director, that they are doing everything they can to ensure that they continue to provide a quality news service."
In a note to staff, Mr Anderson said the loss of revenue "would create a financial challenge for the ABC that would need to be resolved on a whole of ABC basis, and we will continue to work with the government."
"I understand that today's announcement will be concerning for the ABC staff whose positions are supported by the revenue derived from the deals."
The prime minister said that the decision was not made in the "Australian way", adding that Australians have a right to know that companies "won't simply be doing work in order to provide information through the media in Australia that will be appropriated without any cost by a foreign company".
'Dereliction of commitment': Government on Meta
Ms Rowland and Mr Jones said Meta's announcement represented a "dereliction of its commitment to the sustainability of Australian news media".
"The decision removes a significant source of revenue for Australian news media businesses. Australian news publishers deserve fair compensation for the content they provide," the ministers said in a statement.
The ministers said the government was seeking advice from Treasury and the competition watchdog on appropriate next steps under the News Media Bargaining Code, which includes the option for designation.
Seven West chief executive James Warburton said in light of its decision Meta must be designated.
"The case has not only been made but proven and we welcome ministers Jones and Rowland’s commitment to the News Media Bargaining Code," Mr Warburton said.
"We will work constructively with the ACCC and Treasury to ensure their designation."
Shadow communications spokesperson David Coleman said the government should "use every single tool" available to it under the code, but stopped short of specifically calling for a designation.
He accused the government of "weak leadership" after the assistant treasurer acknowledged the decision was "not a surprise" to him.
"We shouldn't be in this position in the first place because the government should have made it very clear to Meta that this would not be tolerated," he said.
"Meta has been basically saying that it's going to go down this path for some time ... Unless this government actually does something other than huffing and puffing, and stamping its feet and sighing, we are going to see a massive impact on Australian journalism."
Greens senator Sarah Hanson-Young called for Meta should be designated.
"A big tech company like Meta cannot be allowed to bully users, journalists and democratically elected governments by deciding which laws of the land they will choose to comply with," senator Hanson-Young said in a statement.
Nine CEO Mike Sneesby said Meta's decision didn't recognise the increasing value of Nine's journalism and "unique content".
Mr Sneesby also said the news media bargaining code provided a "fair value exchange" between Nine and Meta.
"Regardless of the Meta announcement today, the value created on their platform from the use of Nine's IP is both unquestionable and growing and we strongly believe Meta should negotiate in good faith around the fair compensation for that value exchange," he said.
He said that Nine would continue to "robustly advocate that these deals are in the national interest and the arguments that led to the code in the first place remain as strong as ever".
"We need strong regulation of big tech companies that are making huge profits and have a massive influence on our democracy. The government must stand up to Meta and designate them under the News Media Bargaining Code."
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2024-03-01 06:33:45Z
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