The Australian government is actively evaluating its response strategies if Meta, the parent company of Facebook and Instagram, decides to remove news content from its platforms. This consideration follows Meta’s announcement in March that it would not renew agreements to pay media companies for news content. These agreements were initially made in 2021 under the Morrison government’s news media bargaining code.
Stephen Jones, the Assistant Treasurer, is deliberating whether the Albanese government should invoke its powers under the news media bargaining code to “designate” Meta. This designation would compel Meta to negotiate payment terms with news providers or face fines amounting to 10% of its Australian revenue. This potential move has raised concerns among news publishers, who fear that Meta might respond by removing news from its platforms in Australia, mirroring its actions in Canada in August of the previous year.
During a parliamentary inquiry into social media, Tony McDonald, the Treasury’s Assistant Secretary in the competition and consumer branch, emphasized the government’s need to adapt to the dynamic responses of digital platforms. He highlighted the importance of considering various scenarios and strategizing accordingly.
“The international experience with digital platforms shows that static approaches are ineffective because these platforms will always react and adapt. Sovereign governments must be prepared to respond accordingly,” McDonald stated. He clarified that while there was no certainty about Meta’s actions, the government was preparing for all possibilities.
The government is exploring mechanisms to encourage or compel Meta to continue carrying news content. One option under review is the implementation of “must carry” rules, which would mandate Meta to maintain news on its platforms. However, the feasibility and enforceability of these rules within the framework of the news media bargaining code are still being assessed. Another potential strategy involves leveraging tax powers to incentivize compliance with the code.
Legal advice is also being sought to determine how these measures could be enforced against a global tech company. McDonald noted the complexity of applying traditional policy tools to digital entities that may not have a significant physical presence in Australia.
“One of the challenges is adapting policy tools designed for an analogue world, where infrastructure and companies are physically present, to digital companies that operate here but may not have a straightforward legal presence,” McDonald explained.
Michael Miller, the chair of News Corp Australia, recently advocated for new legislation to ensure compliance by social media companies. He suggested that non-compliance should result in these platforms being banned in Australia. In contrast, Tim Duggan, chair of the Digital Publishers Alliance, argued that any ban on news content or platforms would disproportionately benefit larger publishers.
The government’s proactive stance in wargaming various scenarios underscores the complexity of regulating digital platforms. The potential removal of news content from Facebook and Instagram could have significant implications for Australian news providers and the broader media landscape. The government’s challenge lies in balancing the enforcement of the news media bargaining code while ensuring that digital platforms remain conducive to the dissemination of news.
As Australia navigates this regulatory landscape, it must also consider the broader implications for its digital economy and the precedent it sets on the global stage. The ongoing deliberations and strategic planning highlight the evolving nature of media regulation in the digital age and the need for innovative approaches to ensure fair and sustainable practices.
The outcome of these deliberations will be closely watched, not only by Australian media companies and digital platforms but also by international stakeholders seeking to understand the implications of such regulatory measures. The Australian government’s response could set a benchmark for other nations grappling with similar issues in the rapidly changing digital media environment.
