META
NWSA
Meta's potential move to restrict news content on Facebook in Australia is certainly ruffling feathers. During a recent parliamentary hearing, Meta's regional policy director, Mia Garlick, revealed that the social media giant is contemplating such an action should the Australian government mandate licensing fees for news content.
"All options are on the table," Garlick asserted when queried about the likelihood of blocking Australians from sharing news on Facebook. She emphasized the plethora of alternative channels available for news consumption, suggesting that a block wouldn't leave Australians bereft of information.
The backdrop to this consideration is the 2021 Australian law that empowers the government to enforce payment from U.S. tech giants to media outlets for sharing their links. Meta is awaiting a definitive stance from Canberra on whether to enact this law. The company's approach mirrors its stern stance in Canada when similar legislation was introduced in 2023.
It's worth noting that Meta had previously inked agreements with several Australian media entities like News Corp and the Australian Broadcasting Corporation when the law was initially rolled out. However, Meta has indicated that it won’t extend these arrangements beyond 2024.
The ball is now in the court of Australia's Assistant Treasurer, who must decide if enforcing these payments is warranted. While gathering advice, the Assistant Treasurer has hinted at Meta’s selective compliance with the law, noting the company’s adherence only when it’s convenient.
Meanwhile, Australia's major free-to-air broadcasters, Nine Entertainment and Seven West Media, announced job cuts this week. They attributed the revenue dip to the impending expiration of their deals with Meta.
When asked if suspending news sharing on Facebook in Australia would violate the law, Garlick maintained that it would be a form of compliance. "For all laws—tax, safety, privacy—we strive to abide by them," she explained. Compliance with this particular law, if fully enacted, would look different."
Garlick defended Meta's protocols for addressing complaints about harmful misinformation or scams, though she acknowledged that all content moderation centers are overseas. Regarding the lawsuit from Australian mining billionaire Andrew Forrest, who sued Meta over cryptocurrency scam ads featuring his likeness, Garlick admitted the company faces significant challenges but reiterated its commitment to preventing such misuses.
Greens Senator Sarah Hanson-Young provoked thought by questioning how Meta could deem itself an advertising business when some ads propagate falsehoods. Garlick’s response centered on the company’s dedication to mitigating these issues through stringent policies and advanced tools.
For stock traders, the unfolding scenario in Australia is a bellwether for Meta's global strategy regarding regulatory compliance and its potential impact on revenue streams. It warrants close monitoring, and its implications could resonate well beyond the Australian market.
