Meta and federal government have several options on table to save public interest journalism

Meta’s withdrawal from its commercial agreements with news publishers last week was not entirely unexpected, but that’s not to say it was welcome.

This decision is likely to place many news businesses in a tricky position, removing a key source of income even as other traditional sources – subscriptions, classified and other advertising – dry up.

Australia’s public interest journalism sector is in a crisis, even as it grapples with other challenges including the proliferation of generative AI products and an ongoing cost-of-living crisis.

Public interest journalism is a public good; it is the accurate, reliable news and journalism at the heart of public discussion, diversity of voice, open justice, accountability and informed decision-making. It educates, inspires and brings together communities. The loss of such credible, trusted news renders our democracy incomplete and unhealthy, reduces social connection and results in less-informed communities.

The likelihood of this issue being resolved in favour of public interest journalism is slim. However, both Meta and the federal government now have several options on the table. Under the News Media Bargaining Code, the government has the power to “designate” digital platforms to fulfil their obligations under the Code. This would force the digital platform to the bargaining table with media businesses.

Meta’s withdrawal from its commercial agreements with news publishers last week was not entirely unexpected. Picture: Fabrice Coffrini/AFP

Perhaps there the parties could thrash out a new deal that would see payments resume to producers of public interest journalism, and news content retain its place on the social media giant.

But there is a danger that Meta could respond as it did in Canada, by pulling all news content entirely. This would be a major blow not just to news businesses that rely on Facebook, Instagram and the like to promote their products, but to audiences, who would lose a major source of news.

The Digital News Report: Australia 2023 revealed half of those who use Facebook say they use it for the news, so it’s not a long bow to say this would greatly impact Facebook users.

What Meta, housed as it is in Silicon Valley, does not understand, is that its social capital and the value of its social licence in Australia will be sharply reduced as a result of any decisions to “turn off” products for Australian users.

This may justifiably colour government policy decisions in many areas: not just media content, but also in areas such as privacy protection. These actions would be detrimental to Meta as a business in Australia.

Separately from resolving the problems created by Meta’s actions last week, the government needs to address the crisis facing public interest journalism in this country. The reality is that producing accurate, comprehensive public interest journalism, the sort that connects and informs communities, is not an easy or cheap task. Our research at the Public Interest Journalism Initiative indicates serious news deserts across many parts of regional Australia where there is no media presence to report on local councils and courts, community concerns and activities, and other news.

There is also a serious decline in the number of journalists reporting on public matters in capital cities. Artificial intelligence is another emerging threat. The federal government needs to quickly and seriously consider measures that would address this crisis that threatens democracy, the rule of law and social cohesion.

One possibility is R&D tax concessions where new journalists are employed. These have been deployed with success in other industries such as IT innovation, film and TV. We have seen Canada introduce a refundable tax credit to support newsroom salaries too. Coupled with that country’s Online News Act – its version of our News Media Bargaining Code – this could potentially drive significant growth in the news industry. It’s a path that Australia could also explore.

The Productivity Commission’s inquiry into Australian philanthropy also offers potential solutions to our public interest journalism conundrum. The draft report out of the inquiry last year suggested – in line with comments from industry bodies, advocates and researchers such as the PIJI – that DGR status could be extended to public interest journalism.

Encouraging greater philanthropic giving to journalism would provide yet another avenue of funding for publishers and outlets to grow their news products and staff base, ensuring greater coverage of the issues that matter most to Australians.

Elsewhere around the world – particularly in the US – not-for-profit newsrooms are growing in size and popularity. Such news businesses already operate within Australia, but there is room to increase this as a method of funding public interest journalism.

Whatever the path taken, it is clear that it is beyond time for the federal government to act in this space. Public interest journalism – clear, accessible, informative, accurate journalism that provides a service to communities – requires sustained, long-term investment as well as immediate support, lest it become unviable and we see newsrooms around the country fold. Australians would be poorer for its loss.

Professor Allan Fels is chair of the Public Interest Journalism Initiative and former chair of the Australian Competition & Consumer Commission.