Why Does Meta Want To Wind Down Its News Feature In The US And Australia?
Meta Platforms Inc., the parent company of Facebook, is undergoing significant changes with its decision to wind down its news feature in the United States and Australia. The move reflects a broader strategic shift away from the news category for the social media giant. Despite facing criticism from government officials and the media industry, Meta aims to realign its focus on products and services that drive user engagement.
Meta Platforms Inc. is making significant changes to its news feature, announcing the winding down of the Facebook News tab in the United States and Australia.
The decision marks a notable shift for the social media giant, reflecting a broader strategy to move away from the news category.
In a blog post on Thursday, Meta revealed that the Facebook News tab, which allows users to access headlines and stories, will be “deprecated” in both countries by early April.
However, while this move signifies the withdrawal of support for the feature, news content will remain accessible on the platform.
According to Meta, users in the US and Australia will still have the ability to view news within their Facebook feeds.
Additionally, publishers will retain access to their Facebook accounts and pages, enabling them to share news article links and content as before.
Importantly, existing agreements between Facebook and news publishers will remain unaffected, at least until their expiration dates.
The company announced that it will no longer pursue agreements to pay news publishers in the country, a move criticized by authorities and media stakeholders alike.
Meta explained that this shift is intended to allow the company to focus on investing in products and services that drive user engagement.
In a blog post on Friday, the tech giant stated that it will not renew funding deals for traditional news content and will refrain from introducing new Facebook products specifically tailored for news publishers in the future.
The changes will also lead to the closure of the news tab in Australia and the United States in April, following its retirement in the UK, France, and Germany last year.
The company emphasized that the number of people using Facebook News in Australia and the US has declined significantly, with the majority of users visiting the platform to connect with others and explore various interests.
Meta’s previous agreements with news publishers stemmed from Australia’s landmark legislation in 2021, which mandated tech platforms to pay for news content shared on their platforms.
The legislation followed a contentious battle between former Treasurer Josh Frydenberg and tech giants like Google and Facebook, who vehemently opposed the proposed changes.
Google had threatened to withdraw its search engine from Australia, while Facebook temporarily banned news content from being seen by Australian users during the negotiations.
Despite signing confidential deals with various media outlets, Meta’s decision not to engage in new negotiations has raised concerns.
Sky News Australia reported that Meta declined efforts to discuss new deals over the past few months.
Meta, however, reiterated its stance that people primarily use Facebook for personal connections and discovering new interests, with news content constituting a small fraction of users’ experiences on the platform.
While the deprecation of Facebook News in these countries will not affect existing agreements with publishers, Meta emphasized that news organizations can still leverage other features such as Reels and the platform’s advertising system to reach broader audiences and drive traffic to their websites.
The company affirmed its commitment to supporting publishers in maximizing their engagement and revenue opportunities on the platform.
Backlash From Australian Government
Meta’s announcement faced immediate criticism from the Australian government.
Australian Communications Minister Michelle Rowland and Assistant Treasurer and Financial Services Minister Stephen Jones denounced Meta’s decision as a “dereliction of its commitment to the sustainability of Australian news media.”
In a joint statement, Rowland and Jones articulated the government’s stance, expressing disappointment over Meta’s move. They highlighted that the decision removes a significant revenue source for Australian news media businesses, emphasizing the importance of fair compensation for the content they provide.
Rowland and Jones indicated their intention to seek guidance on potential courses of action from the treasury and Australia’s competition watchdog, asserting their commitment to exploring all available options under the News Media Bargaining Code and ensuring continued engagement with news publishers and platforms throughout this process.
The Media, Entertainment & Arts Alliance (MEAA), Australia’s largest union for journalists, raised questions about Meta’s regard for journalism. Asserting that Facebook should compensate news organizations for profiting from their journalism, the union suggested that if Meta refuses voluntary compensation, the government should utilize its authority to compel such compensation.
The Last Bit, Meta’s decision to wind down its news feature in the US and Australia underlines its strategic shift away from the news category – while facing criticism from various quarters, the company aims to prioritize investments in products and services that resonate most with users, emphasizing personal connections and diverse interests.
