Meta, the parent company of Facebook, has announced its decision not to enter into new commercial deals for traditional news content in Australia, France, and Germany. The company also asserted that existing deals with US and UK publishers have expired and will not engage in renewals of those agreements.

In a statement, Meta emphasised its focus on investing in products and services that drive user engagement and clarified that it would not engage in future commercial agreements specifically for news publishers in these countries. This move follows Meta's past disputes with Australia, particularly regarding the requirement for the company to pay publishers for news content.

The decision by Meta has stirred controversy, with Australia's assistant treasurer, Stephen Jones, expressing concerns about the impact on the sustainability of Australian news media. Jones labelled Meta's choice as a 'dereliction of its commitment' and highlighted the government's intention to seek advice from the Treasury and the Australian Competition and Consumer Commission on the appropriate course of action.

Why does it matter?

This development raises questions about the ongoing tension between tech giants and governments over fair compensation for news content. As Meta takes a firm stance on not entering new deals for traditional news content, the situation underscores the challenges in establishing a sustainable model for news media funding in the digital age. The Australian government's response will be closely watched, signalling a broader conversation about the responsibilities of tech companies in supporting the viability of news publishers and the regulatory measures that may be necessary to achieve this balance.