Ruqayyah Snyder
In February 2021, Facebook blocked news content for Australian users in response to a proposed law that would force tech giants to pay news publishers for content. This move was seen as a way to avoid ''forced negotiation'' with news outlets, with Facebook arguing that the law penalized them for content they didn't ask for. The ban was short-lived, as Facebook reversed it a week later after the Australian government agreed to amendments, ensuring Facebook could decide if news appeared on its platform. However, the threat of a ban remains, with Meta (Facebook's parent company) stating it won't renew deals with Australian media outlets beyond 2024, potentially impacting the sustainability of Australian news media.
| Characteristics | Values |
|---|---|
| Year of the ban | 2021 |
| Reason for the ban | In response to the Australian government's News Media Bargaining Code |
| Facebook's stance | Facebook disagreed with the proposed law, stating that it penalises the platform for content it didn't take or ask for |
| Facebook's action | Facebook blocked news content from Australian publishers and international news content from being shared or viewed in Australia |
| Facebook's justification | Facebook argued that publishers willingly choose to post news on its platform to increase subscriptions, audience reach, and advertising revenue |
| Impact on publishers | Smaller publishers were negatively impacted, with some receiving up to 70% of their traffic from Facebook |
| Government's response | The Australian government negotiated with Facebook and made amendments to the law |
| Outcome | Facebook reversed the news ban in Australia |
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What You'll Learn
Facebook's parent company, Meta, refused to pay for news content in Australia
Facebook's parent company, Meta, has refused to pay for news content in Australia, stating that the cost of providing news in the country is too high. In 2021, Australia introduced the News Media Bargaining Code, which would require tech companies to pay for the news on their platforms if no commercial deal was struck. Meta initially responded by blocking news content in Australia, but later reached a deal with the Australian government and lifted the restriction.
However, in 2024, Meta announced that it would not renew its deals with Australian media outlets beyond that year. The company argued that news is only a small part of the Facebook experience for most people and that it does not drive its business. Meta also stated that it wanted to "better align [its] investments with the products and services people value the most". This decision has been criticized by Australian publishers and lawmakers, who argue that it could negatively impact the industry and Australian democracy.
Meta's refusal to pay for news content in Australia has led to concerns about the sustainability of news journalism in the country. Smaller publishers, in particular, are worried about the potential loss of traffic and revenue if Meta were to remove news from its platform in Australia. In response, the Australian government has considered using its powers under the News Media Bargaining Code laws to designate Meta, which would force the company to enter into negotiations for payment with news organizations.
While Meta has not been designated as of yet, the threat of legislation has led the company to strike individual deals with Australian media firms. These deals have resulted in commercial agreements worth approximately $200 million to news organizations. However, Meta has not addressed the broader issue of the sustainability of Australian news media and has instead encouraged news publishers to buy its services to increase their traffic. This would result in a flow of funds from news publishers to Meta, rather than the other way around.
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Meta argued that news is a small part of the Facebook experience
In 2021, Facebook restricted Australian publishers and people in Australia from sharing or viewing Australian and international news content. This was in response to the Australian government's News Media Bargaining Code, which would allow news organisations to negotiate with big tech companies over payment and inclusion of their content on digital platforms. Facebook's parent company, Meta, has since announced that it will stop paying for news content in Australia and cease news aggregation on the site. Meta has stated that news is "a small part of the Facebook experience for the vast majority of people" and is not a primary reason for using the platform, as it makes up less than 3% of what people around the world see in their Facebook feed. Meta has argued that the cost of providing news in Australia is too high and that it will instead "better align [its] investments to [its] products and services people value the most".
Meta's decision has been criticised by Australian politicians and news publishers, who argue that it demonstrates a disregard for the sustainability of Australian news media and the government. Some have also expressed concern that social media is replacing legacy news sources. In response to Meta's decision, the Australian government has referred to the decision as a "dereliction of its commitment to the sustainability of Australian news media".
Meta's rationale for its decision is based on the idea that news is not a significant driver of its business. The company has emphasised that publishers willingly choose to post news on Facebook to increase their subscriptions, grow their audiences, and boost advertising revenue. Meta has also stated that it generated approximately 5.1 billion free referrals to Australian publishers, worth an estimated AU$407 million, while the business gain from news is minimal.
While Meta's decision has negatively impacted smaller publishers, larger publishers with brand-name recognition have been less affected. This is because people visit their websites independently of social media platforms. Meta has encouraged news publishers to buy its services to increase their traffic, reversing the flow of funds from Meta to news publishers.
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Facebook's ban on Australian news outlets in 2021
In February 2021, Facebook blocked news content for Australian users, preventing them from accessing or sharing news stories. This move was seen as a way to protest the proposed law, which would force them to pay media companies for their stories. Facebook argued that publishers willingly chose to post news on their platform to increase subscriptions and advertising revenue. They also stated that the business gain from news was minimal, making up less than 3% to less than 4% of users' News Feed content.
The ban was short-lived, as Facebook and the Australian government reached an agreement within a week. Facebook stated that the government had clarified that they would not be subject to forced negotiations with news outlets. This compromise allowed Facebook to retain control over whether news appeared on its platform. The Australian government also made amendments to the proposed law, addressing Facebook's core concerns.
While the ban was lifted, the issue has persisted, with Meta announcing in 2024 that it would stop paying for news content in Australia and cease news aggregation on the site. This decision has raised concerns about the impact on the Australian news industry and democracy, with Meta being accused of showing disdain for Australian news media. Meta has encouraged news publishers to buy their services to increase traffic, reversing the intended flow of funds.
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The Australian government's News Media Bargaining Code
The NMBC was first proposed in April 2020 when the Australian Government requested the Australian Competition and Consumer Commission (ACCC) to draft a mandatory code of conduct. The final legislation, the Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Act 2021, was passed by both houses of the Australian Parliament on February 25, 2021, and came into effect on March 2, 2021.
The code focuses on online content and applies to 'designated' digital platforms that benefit from a significant bargaining power imbalance with Australian news businesses. While no digital platforms have been designated as of May 2022, the Treasurer can designate platforms subject to the code's obligations. The decision is based on whether there is a significant power imbalance and whether the platform has made a significant contribution to the Australian news landscape.
The NMBC allows eligible news organisations registered with the Australian Communications and Media Authority (ACMA) to negotiate payment for their content with the designated platforms. They can directly negotiate agreements, and if negotiations fail, they can enter into arbitration. The code has led to over 30 commercial agreements between Google, Meta, and a range of Australian news businesses, with a total value of 200 million Australian dollars.
However, the code has faced criticism and opposition from Facebook (now Meta) and Google. Facebook, in particular, argued that the legislation penalises them for content they did not ask for and that it does not encourage innovation and collaboration. In 2021, Facebook temporarily restricted Australian users from sharing or viewing news content on its platform. Meta has also refused to renew contracts related to the NMBC, leading to concerns about the sustainability of Australian news media and the spread of misinformation.
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Meta's decision to cease news aggregation on its site
Meta, the parent company of Facebook, has decided to cease news aggregation on its site in Australia. This decision was made in response to the Australian government's News Media Bargaining Code, which would require Meta to pay news organisations for their content. Meta has argued that news is only a small part of the Facebook experience for most people and that the legislation does not encourage innovation and collaboration between digital platforms and news organisations. Instead, it penalises Facebook for content that it did not take or ask for.
In 2021, Meta initially removed Australian news content from its platform, but after negotiations with the Australian government, a compromise was reached, and news content was restored. However, Meta has now decided not to renew its deals with Australian media outlets, citing the high cost of providing news in Australia. Meta's rationale is that news is not a significant driver of its business, and it would rather invest in other countries and products that people value more.
This decision has sparked concerns about the impact on the Australian news industry and democracy. Some argue that it could hurt smaller publishers, who rely on social media for a significant portion of their traffic, more than larger publishers with other revenue streams. There are also worries about the sustainability of Australian news journalism and the potential increase of fake news on the platform.
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Frequently asked questions
Facebook's parent company, Meta, banned Australian news in response to the Australian government's News Media Bargaining Code. This law would require tech companies to pay for the news on their platforms. Meta refused to be forced by the legislation to pay and chose to remove news content from its platform in Australia.
The ban was criticised as being "terrible for not only the industry but also for Australian democracy". It particularly affected smaller publishers, some of which were getting up to 70% of their traffic from Facebook. The ban also resulted in an increase in fake news on the platform.
Yes, Facebook reversed the ban after reaching a compromise with the Australian government. The government agreed to introduce four amendments, including one that meant the code may not apply to Facebook if it could demonstrate a "significant contribution" to local journalism.
Yes, Meta has also blocked news content on its platforms in Canada.
