In a recent development, Meta Platforms META, the parent company of Facebook, has announced that it will stop compensating news publishers for their content on the social media platform in Australia, France, and Germany.
What Happened: Meta Platforms revealed on Wednesday that it will no longer pay news publishers for their content on Facebook, leading to a fresh confrontation with the Australian government, Reuters reported on Friday.
The decision comes as Meta Platforms has been reducing its promotion of news and political content on its platforms. The company has also terminated its news tab in the U.K., France, and Germany.
As a result of this move, Meta Platforms will not enter into new commercial deals for traditional news content in these countries and will not introduce new Facebook products specifically for news publishers.
This action puts Meta Platforms at odds with the Australian government, which has the authority to appoint a mediator to determine the fees that large tech firms must pay for news links, as per a 2021 law.
Why It Matters: This decision by Meta Platforms is a significant shift from its previous stance on compensating news publishers. In January, it was reported that Meta’s refusal to share revenue could cost news publishers billions in traffic referrals.
However, this move by Meta Platforms is not entirely unexpected, as the company has been taking a firm stance on news content compensation laws. In February, Meta clarified its position on Indonesia’s law that mandates digital platforms to compensate news publishers for their content, stating that the law does not apply to them for content that publishers post voluntarily on its platforms.
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