Meta, Facebook's parent company, announced on Friday it would stop paying Australian media for its information, sparking the ire of the government, which believes the group is “failing” in its obligations.
• Also read: Meta's paid subscription is the target of a new complaint from European consumers
• Also read: Zuckerberg discusses AI with Japanese Prime Minister
Meta, which has removed news content from its platform in many countries, said it would remove the Facebook News tab in Australia and not renew its content deals with media companies worth hundreds of millions of dollars.
“People don’t come to Facebook for news and political content,” the company said in explaining its removal of Facebook News, a tab that provides access to online articles from major media companies.
The decision was expected, but is expected to be a blow to the Australian media, which is already struggling to stay afloat.
Meta has already announced that it will not renew its contracts to provide news content with media companies in the US, UK, France and Germany.
The social media giant had been pressured by governments to agree to pay media companies for informational content to create more favorable market conditions for struggling media companies.
Media outlets around the world have shifted to online publications but are struggling to monetize their content as digital giants like Google and Facebook have taken over the majority of online advertising revenue.
Three years ago, Meta's promise to pay Australian media led the government to water down a new law regulating online platforms and their relationships with news media.
Communications Minister Michelle Rowland expressed anger at Meta's announcement on Friday and suggested retaliation.
“Meta’s decision to stop paying for news content in a number of jurisdictions represents a failure in its commitment to the viability of Australian news media,” Ms Rowland said.
“This decision removes a significant source of revenue for Australian news media companies. “Australian news publishers deserve fair compensation for the content they provide,” she added.
The government will “explore all available options” to resolve the problem. Canberra is “committed to supporting a strong, sustainable and diverse media sector as it is critical to our democracy and social cohesion,” she said.