Internet
Meta does not want to extend contracts with Australian media
Meta has announced it will not be renewing contracts with several major news organizations in Australia. photo
© Rafael Henrique/Zuma Press/dpa
Three years ago there was a row between Australia and Facebook over a controversial media law. After an announcement by the Internet giant, some are now talking about “war.”
Outcry in the Australian media world: The Facebook owner Meta has announced it will not renew multi-million dollar contracts with several major news companies in Australia.
At the beginning of 2021, the US internet giant agreed on payments for journalistic content with, among others, the Australian ABC, News Corp, the Australian Guardian and Nine Entertainment. The deals came about a few weeks after the passage of a controversial media law in Australia.
The law forced Google and Facebook to pay local media companies to distribute their content. Australia wanted to ensure that advertising revenue was distributed more fairly. A lengthy dispute followed between Facebook and the government, which escalated in some cases – but ended with an agreement in March 2021. The contracts, which expire in a few weeks, brought millions into the coffers of the media involved every year.
Government sharply criticizes announcement
A statement from Facebook now states that users do not use the platform for news and political content and that the company wants to invest its money differently. “This is part of our ongoing effort to better align our investments with our products and services that people value most.”
The Australian government sharply criticized the announcement. Australian news publishers deserve fair compensation for the content they provide, Communications Minister Michelle Rowland has said. She will seek advice from the Treasury and the competition regulator. The government could force Facebook to enter into arbitration with media companies to determine compensation for news content, according to an ABC report.
“The government and local media companies will go to war against Facebook owner Meta,” wrote the Australian Financial Review newspaper. Green Party politician Sarah Hanson-Young emphasized: “A large technology company like Meta must not be allowed to bully users, journalists and democratically elected governments by deciding which country’s laws it wants to comply with.”