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Labor to establish committee to scrutinise social media companies

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The news: The federal government will establish a joint select committee into social media companies tasked with scrutinising Meta’s decision to dispense with lucrative news deals and the influence of algorithms on Australian users.

The context: Communications Minister Michelle Rowland and Assistant Treasurer Stephen Jones announced the committee in a joint statement late Thursday and said social media platforms in recent months had demonstrated the negative impacts they could have on society.

The committee will specifically examine and report on Meta’s decision to walk away from content deals with news publishers worth between $70 million and $100 million a year, and assess the role of public interest journalism in countering mis- and disinformation on social platforms.

It will also probe the algorithms, recommendation systems and “corporate decision making” made by digital platforms in influencing what Australians see and their impact on mental health, as well as other issues related to harmful and illegal content hosted by social platforms.

The government aims to consult on the committee’s terms of reference across Parliament next week. The terms will offer a broad framework for the committee, which will then call for submissions and later have the power to call witnesses and hold hearings.

The announcement comes as the competition regulator assesses whether news publishers have a bargaining imbalance with Meta under the media code, and in the throes of a Federal Court fight between the eSafety Commissioner and X over its refusal to remove violent content.

Jones last week signalled that Meta had threatened to pull the pin on news should the government go ahead and pull the trigger and “designate” Meta under the news media bargaining code, forcing the tech giant into fresh negotiations. The Sydney Morning Herald and Age first reported the threat.

What they said: “These social media companies have enormous reach and control over what Australians see with little to no scrutiny,” Rowland said in the joint statement.

“In our democracy, it is imperative that Australians have access to quality public interest journalism, including on social media. Unliteral [sic] decisions to undermine news hurts us all. Social media companies have social responsibilities. They need to be more accountable and transparent.

“Parliament needs to understand how social media companies dial up and down the content that supports healthy democracies, as well as the anti-social content that undermines public safety.”

Jones said: “Social media is a great way for people to connect, it’s become a part of everyday life for many people".

“But users are also exposed to harm in an environment where it can be difficult to distinguish fact from fiction. The social media giants seem more determined to wipe trusted news sources from their platforms than scammers and other criminals. This will open the floodgates for misinformation and disinformation,” he said.

“We have a clear message for the platforms. Be better. Do better.”

The sources: Minister for Communications, SMH


By John Buckley