Australia should mandate Meta Platforms (META.O) to compensate news companies for content displayed on Facebook and enact broader regulations on social media corporations, stated a high-ranking News Corp (NWSA.O) executive.
Meta announced in March its decision to cease payments to Australian news publishers for content. Presently, the government deliberates whether to enforce a 2021 law requiring Meta to resume payments.
“We urge Meta to be classified under the Media Bargaining Code and urged to engage in fair negotiations,” asserted Michael Miller, executive chairman of News Corp Australia, during a speech in Canberra, referencing the terminology of the 2021 legislation.
Publishers contend that Facebook and other internet giants unfairly profit from advertising revenue when news article links appear on their platforms. Although Meta forged payment agreements with Australian media companies in 2021, many of these agreements are set to expire this year.
Should the government attempt to enforce the 2021 law, Meta may opt to restrict users from sharing news articles, akin to its temporary action in Australia in 2021 and its actions since 2023 in Canada, where similar laws exist and have led to a noted increase in misinformation dissemination, according to academics.
Meta has been scaling back its promotion of news and political content to drive traffic and has announced plans to discontinue a news-promotion tab on Facebook in Australia.
In his address, Miller also lamented the adverse effects of social media on mental health and its role in amplifying scams and societal issues like misogyny. He proposed a regulatory framework for tech giants such as Meta, TikTok, and X (formerly known as Twitter) aimed at safeguarding Australians.
