Meta will throw the toys out of the cot, again
Meta has maintained its news-blocking stance in Canada for over two years without significant repercussions, challenging the assumptions behind Australia's proposed News Bargaining Incentive. The Australian government's plan to tax tech firms that don't strike deals with media companies may not compel Meta to act, given its previous actions. Evidence suggests news content contributes minimally to user engagement on Facebook, reducing Meta's incentive to pay for it.
- ▪Meta has blocked news content in Canada for 2½ years without facing major consequences.
- ▪Australia's proposed 2.25% tax on tech firms could cost Meta $27 million to $34 million if it refuses news deals.
- ▪Less than 1% of Facebook posts in Australia link to domestic news outlets, according to researcher Axel Bruns.
- ▪Meta ended its news deals in Australia in March 2024 and removed news from its platform in Canada after similar legislation.
- ▪Meta likely views regulatory fines as cheaper than paying publishers for news content that does not drive significant engagement.
Opening excerpt (first ~120 words) tap to expand
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.