After banning kids under 16 from social media, Australia is ready to fine Meta for not paying what it owes

Why do people hop on social media: because there's fresh information (and news) on there… or because of the social media platform itself?

Both, I guess, but that's a bit like the chicken-egg question.

In Australia, that's a multi-million dollar question. The social media one, not the chicken-egg.

Now, Australia's government unveils plans to implement new regulations for large technology companies to compensate local media outlets for news content hosted on the popular social media platforms. If these firms fail to comply, they could face substantial fines. We're talking millions of dollars here. This move targets giants as Meta Platforms (Facebook, Instagram), and Alphabet’s Google.

Assistant Treasurer and Minister for Financial Services Stephen Jones, reports Reuters, stated in a press conference that the initiative is designed to create financial incentives for agreements between digital platforms and Australian media businesses.

He noted that the regulations would apply to major social media platforms and search engines generating over $250 million in Australian-based revenue.

As expected, the tech industry has criticized the proposal. A representative from Meta argued that the plan misrepresents how their platforms operate, suggesting that most users do not visit their sites for news and emphasizing that news publishers voluntarily post content due to the value they derive. A Google spokesperson warned that the policy could undermine existing commercial agreements with Australian publishers.



This announcement follows a series of measures by the Australian government to regulate major technology companies. Recently, Australia became the first country to prohibit children under 16 from accessing social media platforms. The government has also introduced plans to impose fines on tech firms that fail to curb online scams.

Under the proposed regulations, platforms such as Google, TikTok’s parent company ByteDance, and Meta would be subject to charges. However, X (formerly Twitter) would be excluded, Jones clarified.

These developments build on Australia’s 2021 legislation, which mandated US-based tech companies to compensate media outlets for content that drives web traffic and advertising revenue. At the time, Meta briefly blocked Australian users from sharing news articles before reaching agreements with outlets like News Corp and the Australian Broadcasting Corporation. However, Meta has since stated it will not renew these arrangements beyond 2024, aligning with its global strategy to scale back the promotion of news and political content. Personally, I'm skeptical such a thing will ever happen, but, hey, if they say so!

Meta has tried to do so, though, by progressively reducing its focus on news, discontinuing the news tab on Facebook in Australia and the United States while eliminating it in Britain, France, and Germany last year. In a similar dispute earlier this year, Meta blocked Canadian users from sharing news content after Canada introduced comparable legislation.