Meta announced plans to discontinue Facebook's news feature for users in the United States and Australia, igniting potential tensions with lawmakers critical of the tech giant's treatment of the media sector, the New York Post reported.
The move comes as Meta aims to realign its focus with user preferences, particularly emphasizing short-form video content. According to Meta, the utilization of the News Tab plummeted by over 80% in both the U.S. and Australia throughout 2023.
"This is consistent with Meta practices around the world to distance itself from news content," remarked Danielle Coffey, president and CEO of the News/Media Alliance, a nonprofit representing numerous news outlets.
In a blog post Thursday, Meta revealed its decision, stating it "will not enter into new commercial deals for traditional news content in these countries and will not offer new Facebook products specifically for news publishers in the future."
The decision drew sharp criticism from Australian Prime Minister Anthony Albanese, who emphasized the importance of a well-funded media industry and condemned Meta's actions as "not the Australian way," The Guardian reported.
"We know that it's absolutely critical that media is able to function properly and be properly funded," Albanese said. "Journalism is important, and the idea that research and work done by others can be taken free is simply untenable."
Meta's removal of the News Tab follows similar actions in the United Kingdom, France, and Germany last year. The company clarified that agreements with publishers in France and Germany remain unaffected.
In response, Michael Miller, executive chairman of News Corp Australia, praised the government's support for the media industry and urged exploration of options under the News Media Bargaining Code.
Despite the cessation of the News Tab, media outlets will retain access to their Facebook pages. Meta's other services will remain intact, ensuring users can access news articles within the Facebook app.
However, Meta's decision underscores longstanding criticisms regarding its compensation of news outlets for the traffic driven by their content. A study estimated that Facebook should pay news outlets nearly $2 billion annually, while Google should pay significantly more, the Post reported in November.
In 2021, Facebook inked publishing agreements following Australia's enactment of a law mandating negotiations between tech firms and publishers. Last year, Facebook discontinued the News Tab in Canada in response to similar legislation.
In the U.S., Meta faced legislative pressure in California to pay a "journalism usage fee," prompting Meta threats to remove news content from Facebook and Instagram users.
This move aligns with Meta's broader retreat from news services amid heightened government scrutiny over its business practices.
"Meta is using its immense market power to refuse to negotiate, and the government is right to explore every option …," Miller said.
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
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