Facebook unfriends the nation

Tech giant Facebook is behaving like a digital dictator, refusing to pay Australian publishers for the news content they produce that appears on its social media platform. Facebook’s owner, US company Meta, has announced that from April it will “deprecate” its dedicated news tab in Australia. It insists it will no longer pay for the content, but nor will it remove it. The $US1.2 trillion company wants it for nothing.

Meta’s highhanded decision shows contempt for its audiences and the democratic process of open debate on important issues. By depriving independent media companies of millions of dollars in revenue, Meta is threatening the lifeblood of smaller publishers and broadcasters, and the democratic process, by limiting what audiences will be able to read or watch. Its greed would undermine democracy by stifling public awareness of important issues, from Australia’s security in a deteriorating strategic environment to interest rates and power prices.

News is expensive to cover, produce and present. And, as Anthony Albanese said on Friday, the idea that one company (a behemoth in the case of Facebook) can profit from others’ investment in capital, in people and in journalism is unfair and not the Australian way.

The Prime Minister said Meta’s plans were “simply untenable” and the government will consider its options. It needs to act with bite; and it has the means to do so, via the formidable legislation drawn up by Josh Frydenberg in 2020 that forced Facebook to negotiate with media companies and pay a fair price for the content it uses. In 2021, under the legislation, which drew bipartisan support, Meta signed a raft of three-year deals with Australian publishers. These will expire in coming months.

Facebook generates advertising revenue by disseminating content produced by other news outlets. Under the legislation, which set a benchmark for other nations, Facebook can be fined up to 10 per cent of its revenue – potentially billions of dollars – if it breaks the rules.

Mr Albanese has left the door open to reinvesting the revenue from such fines in local publishers damaged by the tech titan’s decision. “We’re very concerned with this announcement,’’ he said. “It is absolutely critical that media is able to function and be properly funded.”

Communications Minister Michelle Rowland and Assistant Treasurer Stephen Jones (who oversees the News Media Bargaining Code established under the legislation) said the government was seeking advice from Treasury and the Australian Competition & Consumer Commission. Once armed with that advice, they will need to pick up the phone and negotiate with Facebook founder and CEO Mark Zuckerberg.

As Michael Miller, executive chairman of News Corp Australasia, said, Meta is “using its immense market power to refuse to negotiate, and the government is right to explore every option for how the Media Bargaining Code’s powers can be used’’.

Meta’s decision would directly impact the viability of Australia’s many small and regional publishers, which would be a pressing issue for the government to confront. “I welcome the government’s support for the Australian media industry and its wholehearted commitment to upholding our laws and the News Media Bargaining Code,’’ Mr Miller said. “Meta is attempting to mislead Australians by saying its decision is about the closure of its news tab product; however, the vast majority of news on Facebook and Meta is and will continue to be consumed outside this product.’’

In refusing to pay for news content used on its platform, Meta is punishing the people of Australia, especially its own customers. If it got away with its highhanded declaration, it would be acting as a hindrance on the democratic process.