Jerry Jackson Meta and Google are challenging a newly proposed fee by Australian media regulators. Both companies question its fairness and potential consequences. They argue that their current contributions to Australian publishers already provide significant support.
Meta Emphasizes Its Free Traffic Contributions
Meta, the parent company of Facebook, asserts that it plays a vital role in supporting Australian publishers. In 2023, Facebook’s Feed delivered over 2.3 billion free clicks to Australian media websites. This traffic generated an estimated 115 million Australian dollars, or $73 million, in publisher revenue.
In a March blog post, Meta Australia highlighted these figures to showcase its contributions. The company believes this free traffic is a cornerstone of publisher success. Meta argues that these efforts prove its commitment to Australian media without imposing additional costs.
Google Reconsiders Existing Media Partnerships
Google, a key player in supporting Australian journalism, has signed agreements with over 80 local news organizations since 2021. These partnerships were part of the media bargaining code, which ensures financial support for journalism.
Despite this, the newly proposed fee has caused Google to rethink its approach. While the company previously pledged to renew its deals, it now expresses concerns about the financial burden. Google is reassessing how this change might affect its ability to maintain strong partnerships with Australian publishers.
Meta and Google have both made substantial contributions to the Australian media ecosystem. However, the proposed fee has introduced new challenges for their long-standing support. As regulators push for higher financial commitments, both companies face tough decisions about their future roles. The outcomes of these decisions could shape the landscape of digital journalism in Australia.