Tech giant Meta on Thursday attacked Australia's attempt to make social media companies pay for news, calling the proposed legislation 'grossly unfair' and expressing vehement opposition.
Meta's Strong Opposition
Meta, the parent company of Facebook and Instagram, stated that the draft laws are poorly designed and will not foster a diverse and sustainable news industry. The company described the legislation as discriminatory and economically incoherent, arguing it fails to deliver what Australian journalists and audiences deserve.
Australia's Plan for News Compensation
Australia wants major tech companies, including Meta, Google, and TikTok, to compensate local publishers for sharing news articles that drive traffic on their platforms. Under the proposed framework, these companies will first have the opportunity to negotiate content deals with news publishers. If they refuse, they would face a compulsory levy equivalent to 2.25 percent of their Australian revenue.
The draft laws, unveiled earlier this year, aim to prevent social media companies from simply removing news content from their platforms. When similar laws were mooted in 2024, Meta responded by disabling the 'news' tab for Australian users.
Global Context
Traditional media companies worldwide are struggling to survive as readers increasingly consume news via social media. Supporters of such laws argue that social media platforms attract users with news stories and capture advertising revenue that would otherwise support struggling newsrooms. According to Australia's University of Canberra, more than half of Australians use social media as a news source.
The draft laws are expected to be introduced to parliament later this year.
