Facebook’s parent company Meta said on Friday that it would stop paying Australian media outlets for news, which prompted a government alert claiming the company was “dereliction” of duty.
Meta announced a global retreat from news content, announcing that it would not be renewing contracts worth hundreds of millions of dollars with news publishers and that it will remove the Facebook News button in Australia.
“People don’t come to Facebook for news and political content,” the firm said, explaining the move.
Although the decision was anticipated, it will be devastating to Australian news organizations who are already having a difficult time making ends meet.
Prior to this, Meta had declared that it would not be extending its content agreements with US, UK, French, and German news publishers.
Governments seeking to level the media playing field and assist faltering news companies have forced the social media behemoth into paying for news.
For years, the profits of media firms worldwide have been declining as advertisers move their focus to well-known digital platforms like Facebook and Google in an attempt to reach consumers.
The Australian government weakened laws governing online platforms and their connections to the news media three years ago as a result of Meta’s pledge to compensate news outlets.
Michelle Rowland, the minister of communications, expressed her outrage at Meta’s declaration on Friday and hinted that the government would retaliate.
