Meta and Google are taking a stand against a new charge proposed by Australian media regulators. Both tech giants question the fairness of the charge and its potential impact on their operations. They emphasize their existing contributions to Australian media while raising concerns about the sustainability of increased financial obligations.
Meta Demonstrates Its Contributions to Australian Media
Meta, the parent company of Facebook, asserts that it already provides substantial value to Australian media companies. In 2023, Facebook’s Feed sent over 2.3 billion free clicks to Australian publishers. These clicks generated an estimated 115 million Australian dollars, or $73 million, in revenue.
In a March blog post, Meta Australia highlighted these figures to showcase its ongoing support for journalism. The company believes these contributions underline its commitment to Australian publishers without the need for additional costs. Furthermore, Meta argues that this free traffic plays a vital role in driving media revenue.
Google Reassesses Its Media Agreements
Google, like Meta, emphasizes its history of supporting Australian media through partnerships. Since the 2021 media bargaining code, Google has signed deals with more than 80 Australian news organizations. These agreements have provided critical financial backing for journalism and strengthened relationships with publishers.
Despite this track record, Google now questions whether it can continue these partnerships. While the company initially committed to renewing its deals, the proposed charge has introduced uncertainty. Google expresses concern about the financial strain this new requirement might impose, forcing it to reconsider its approach.
Both Meta and Google have significantly influenced the Australian media ecosystem. However, the new charge raises serious doubts about the future of these contributions. As regulators push for greater financial support, both companies must decide whether to comply or scale back their efforts. Their decisions will likely shape the future of digital journalism in Australia.
