Meta, the conglomerate behind Facebook and Instagram, has announced it will cease funding agreements with Australian publishers and discontinue its news tab facility in both Australia and the United States. This decision is rooted in the company’s intention to realign its investments towards features that resonate more with its user base, following observations of a decline in the utilization of Facebook News. The shut down of the news tab, following a trend initiated in the UK, France, and Germany, is attributed to the marked decrease in user engagement with news content on the platform, with less than 3% of time spent on Facebook devoted to consuming news.

The Australian government has reacted strongly to Meta’s decision, viewing it as a challenge to the viability of the nation’s news media. Prime Minister Anthony Albanese expressed disappointment, while Assistant Treasurer Stephen Jones warned of possible governmental actions under the news media bargaining code to ensure just compensation for news content on such platforms. This move has reignited discussions about the responsibilities of social media companies towards content hosting and the financial sustainability of traditional news media in the digital era.

Criticism has also come from Rod Sims, the former chair of the Australian Competition and Consumer Commission (ACCC), who denounced the decision as selfish. Calls for the designation of Meta under the news media bargaining code, which could impose fines for non-compliance, have been made by various stakeholders including the Greens spokesperson and Free TV Australia.

Meta’s choice to halt payments for news content in Australia and terminate its news tab highlights the shifting dynamics of digital content consumption and the challenges facing the news publishing industry in adapting to these changes.