Image: Federal Assistant Treasurer and Minister for Financial Services Stephen Jones speaks to the media during a Meta news presser. Bianca de Marchi, AAP
by HOPE PRATT
Publishers are set to lose millions of dollars after Meta, the world’s largest social media company, announced last week that it would not renew its deals with large Australian media companies.
Last week Meta announced they would be shutting down Facebook News in Australia and the United States in early April this year, citing an 80% drop in engagement with news content.
“As a company, we have to focus our time and resources on things people tell us they want to see more of on the platform, including short form video,” said the company in a statement.
The decision follows last year’s closure of Facebook News in the UK, France and Germany in September.
While Meta has stated this will not impact existing terms and agreements between Facebook News and publishers, once expired they will not be renewed.
However, there will be no new investments in products, services, or commercial deals for news publishers will be made, meaning news publishers who have deals with Meta will lose millions of dollars.
There’s since been an outcry about the detrimental effects of Meta’s decision on the Australian news landscape.
Assistant Treasurer and Minister for Financial Services, the Hon Stephen Jones, said in a statement on Friday 1 March that businesses will suffer from the changes.
“The decision removes a significant source of revenue for Australian news media businesses. Australian news publishers deserve fair compensation for the content they provide,” he said.
The Australian Government has now committed to seeking the advice of the Treasury and ACCC under the News Media Bargaining Code.
“We will now work through all available options under the News Media Bargaining Code. The Government will continue to engage with news publishers and platforms through this process.”
