Meta, the parent company of Facebook, has announced its decision to cease paying newspaper publishers and discontinue its news section entirely, citing a lack of user interest in news and political content on the platform.
In a move that will impact US and Australian publishers, Meta revealed plans to terminate existing agreements with publishers and shut down the news tab, which provided users with a curated feed of articles. Despite this change, users will still have access to news shared by friends and accounts they follow, including those of news publishers.
This decision follows a similar move by Meta last year in the UK and Europe. However, the complete shutdown of the news unit in remaining countries marks the end of Facebook’s formal relationships with news companies. Many publishers had relied on social media platforms like Facebook to attract millions of readers, and Meta’s decision could have significant implications for their future revenue streams. Previously, Meta had compensated publishers with millions of pounds in response to claims that the company was benefiting from their content without proper compensation.
Australian Prime Minister Anthony Albanese expressed concerns about the impact of Meta’s decision on journalism and media funding. He emphasized the importance of properly funding the media industry and condemned the notion of profiting from the work of others without compensation.
The Australian government has announced its intention to explore potential actions under its news media bargaining code in response to Meta’s decision to halt its news section. The code regulates the interactions between news organizations and online platforms, resulting in numerous agreements between the two parties.
Meta justified its decision by highlighting a significant decline in the usage of Facebook News in both Australia and the US, with a drop of over 80% reported last year. The company asserted that users primarily utilize Facebook for social connections and discovering new interests, rather than consuming news and political content.
Previously, Meta had pursued partnerships with news publishers, contributing to the substantial valuations of companies like Vice and BuzzFeed, which anticipated leveraging social media traffic. However, the company has gradually reduced the emphasis on news content in recent years, shifting its focus towards promoting alternative content formats such as short videos reminiscent of those found on TikTok.
Sir Nick Clegg, Meta’s head of global affairs, previously advocated for the company’s payments to news publishers, citing them as a means to support the sustainability of journalism. However, Meta’s recent decision to cease payments to news publishers reflects a shift in strategy.
The forthcoming Digital Markets, Competition, and Consumers Bill in the UK is anticipated to exert pressure on major internet companies, compelling them to remunerate news publishers for their content. This legislation underscores growing efforts to address the imbalance in the relationship between digital platforms and news organizations, potentially reshaping the dynamics of the online news ecosystem.