Media Outlets Call On Government to Go to War with Meta After Content Deals Axed

The Australian government is wrestling with the difficult question of how to respond to Meta’s cancellation of content deals, and may yet force it to negotiate.

Meta Founder and CEO Mark Zuckerberg testifies before the Senate Judiciary Committee in Washington on Jan. 31, 2024. Madalina Vasiliu/The Epoch Times

Australian news publishers have reacted negatively to Facebook owner, Meta’s decision to end its contracts for news on the platform, in a move that has left the federal government weighing up its options on whether to pursue the multinational for payment.

The deals were due to expire in the next few months and had provided Australian media companies with up to $200 million (US$130 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 deprecate the “news” tab in Australia and the United States.

The deals were originally cobbled together in the wake of Australia’s introduction of the News Media Bargaining Code in 2021, which legislated a framework that allowed news publishers to strike commercial deals with Google and Facebook for their Australian content.

Government Resolved to Use Its Powers

Minister for Communications Michelle Rowland and Assistant Treasurer Stephen Jones said the government was committed to the News Media Bargaining Code and is seeking advice from the Treasury and the Australian Competition and Consumer Commission (ACCC) on what steps can be taken.

“Nobody should be under any illusions about our resolve to use the powers that are available to us [under the news media bargaining code],” Mr. Jones said.

“We want to make it clear that we are backing Australian journalism … we have to ensure that [companies] who use content are paying for it. We’re not talking about some plucky little start-up; we’re talking about one of the world’s largest and most profitable companies.”

Assistant Treasurer Stephen Jones says "Nobody should be under any illusions about our resolve to use the powers that are available to us". AAP Image/Lukas Coch

The government has powers to “designate” Facebook, which would force it into arbitration with media companies to determine remuneration for news content.

Calls to ‘Designate’ Facebook Under Bargaining Code

Seven West CEO 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.”

Nine CEO Mike Sneesby said Meta’s decision didn’t recognise the increasing value of Nine’s journalism and “unique content,” and said the code provided a “fair value exchange” between the two companies.

Mike Sneesby, CEO of Australian media company Nine (Courtesy of Nine Network).

“Regardless of the Meta announcement, 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.”

Small Newspapers Severely Impacted

Country Press Australia (CPA), which represents 230 regional and local newspapers, said the decision would severely impact the news industry.

CPA President Andrew Schreyer said: “Meta’s actions undermine our democracy … the company displays such disdain for the work of the news industry. It undermines public confidence in the media sector.”

He pointed out that the most popular Facebook pages in many regional and rural communities belonged to those of local news outlets, and rejected claims by Meta that people don’t visit its platform for news or political content.

“What about in times of bushfire and floods? Local experience would suggest otherwise,” he said.

‘Techno-Anarchist’: AFR

The News Corporation-owned, The Australian newspaper, ran a front-page headline saying, “Tech tyrant goes to war with Australia,” featuring a photo of Meta CEO Mark Zuckerberg. Another story was titled “Meta’s move in bad faith.”

The Australian Financial Review also opted for a martial metaphor, with a story announcing the move titled, “It’s war—Meta pulls out of news deal.”

It also ran an opinion piece headlined “The time has come for parliament to fire its cannon—at Meta,” calling the decision the “latest example of the company’s brazen indifference to regulations and the content creators that feed their platform” and labelling Mr. Zuckerberg a “techno-anarchist.”

The left-leaning, The Guardian newspaper, described both Meta and Google’s response to the code as “hissy fits” and said Meta’s position as “intransigence.” Another story’s headline warned, “No news is bad news for all of us, Meta.”

At the other end of the scale, small newspapers are also launching broadsides at the tech company, with the Dungog Chronicle, serving a small NSW town of just over 2,000 people, publishing a graphic urging readers to “Fight for your news.”

‘Arrogant Act’: Union

The Media, Entertainment, and Arts Alliance—which represents journalists and others involved in news production—said Meta’s decision was a “damaging blow to the public’s right to be informed by trusted, quality journalism.”

MEAA federal president, Karen Percy, said the move was “an arrogant act by a company with too much power that thinks it is beyond [the] reach of any government.”

The Australian Broadcasting Corporation used funds from commercial deals with Meta and Google to create more than 50 regional jobs. Country Press Australia also says many jobs will be lost in the regions as a result of the decision.

Meta announced in September 2023 that it was removing the Facebook News tabs from its sites in the UK, France, and Germany.

News deals struck with United States and the United Kingdom had also already expired prior to the March 1 announcement.