Liam Walsh
Liam is a Co-Director at Intelligency and heads up the agency's Digital Intelligence & Paid Social activity. Over the last decade, he has worked with brands from the world of sports such as Premier League clubs to entertainment such as Channel 4 and Disney.
Meta has taken the dramatic step of suggesting it start blocking news content on Facebook in Australia. The move comes in response to the News Media Bargaining Code which aims to promote equality in media.
Why is Meta threatening a news blackout?
The News Media Bargaining Code has frustrated Meta, who have previous with regards to taking hardline stances against legislation. In 2023, they battled Canada whose laws dictated that Meta provide compensation to news companies (Online News Act). Consequently, Meta started censoring news in the North American country and continues to do so.
What is the purpose of the News Media Bargaining Code
The legislation has been introduced to address the inequality and power dynamics between digital platforms such as Facebook and more traditional news brands. It legislates that new outlets receive a fair compensation for their content which is shared on Meta.
The Australian government wants Meta to acknowledge that there is a symbiotic relationship between publishers and social media platforms. By doing this they will, be able to address the decline in advertising revenue for publishers as a result of social media’s growing influence.
What are the potential consequences of Meta’s action?
A massive consequence of Meta pursuing this line of action is that they would see a steep decline in traffic levels. This could result in them creating bespoke social networks for news or the increase in subscriber models due to the drop in ad revenue. From a user’s perspective, there may be an increase in misinformation, as mainstream news outlets become less visible.
What are the potential global implications?
This conflict is a microcosm of the growing unease between traditional news and social media. With Meta being prepared to flex its muscles in Australia, this could signal their negotiation strategy. Whatever happens next, we should expect that the dynamic between technology giants and media outlets will continue to develop and this could have repercussions on the nature of our news and how it is shared and consumed.
