Meta vs Media: The rematch
The collective outrage that has met Meta's move to tear up deals with the Australian media industry distracts from flaws in the laws underpinning them.
It’s certainly discomforting to be a journalist reading about Meta’s intention to pull $70 million out of Australia’s media industry, especially when newsrooms around the world are laying off reporters – or closing down altogether – with concerning regularity.
Australia’s media titans are not thrilled either. As John Buckley reported for Capital Brief today, some of the country’s most influential news outlets have likened Meta's intention to walk away as the first shot in a war against Australia. Analysts are warning that Nine Entertainment, Seven West Media and News Corp could all take significant hits to earnings as a result of the move. You don’t have to be too cynical to tie the two things together.
Yet the strong reaction points to a crucial flaw in the News Media Bargaining Code, a law compelling Meta and Google to strike commercial agreements with media companies brought in by the former Coalition government during the pandemic.
The commercial deals it led to are shackled under NDAs and shrouded in secrecy. News Corp, Nine and Seven – the industry’s biggest commercial players – received disproportionate benefits, said Caroline Fisher of the News & Media Research Centre. While some newer entrants such as Crikey and The Guardian did strike deals, many others missed out.
