In February 2021, Facebook made headlines around the world when it blocked news content from being shared on its platform in Australia. This dramatic move came in response to proposed legislation in Australia that would force tech giants like Facebook and Google to pay news publishers for content. So is Facebook still blocking news content from being seen by users in Australia today? Let’s take a closer look at how this issue has evolved over the past two years.
What led to Facebook blocking news in Australia?
In April 2020, the Australian government directed the Australian Competition and Consumer Commission (ACCC) to develop a mandatory code of conduct to address the power imbalance between digital platforms and media companies. The ACCC developed a draft code that would require Facebook and Google to pay Australian news publishers for using their content or face steep fines. Key points in the draft code included:
- Digital platforms must negotiate with news publishers to pay for content
- If no agreement is reached, the issue goes to binding arbitration
- Heavy penalties for non-compliance
Facebook argued that news content was not the primary reason people used its platform and the proposed law overestimated the value that news content brought to Facebook. Negotiations between Facebook, Google, and the Australian government went back and forth for months.
In February 2021, with the legislation imminent, Facebook made a dramatic move by blocking all news links and content from being visible to Facebook users in Australia. When users tried to share news links, they were met with a message saying the content was not available. Australian news publishers also found that links to their sites and content were blocked from being shared. Only news organizations outside of Australia remained accessible on Facebook.
How long did the Facebook news blackout last?
Facebook’s banning of news in Australia only lasted about a week. There was immense public backlash against Facebook’s actions both within Australia and around the world. The ban prevented major news stories and urgent public safety information from being shared at the height of the Covid-19 pandemic. Facebook faced accusations of censorship and abusing its dominant market position.
Behind the scenes, the Australian government continued negotiating with Facebook on amendments to the proposed law. On February 23, 2021, the Australian government agreed to some changes that would give digital platforms more discretion and control over which deals they chose to make with news publishers. With these concessions, Facebook agreed to lift the news ban the next day, after it had been in effect for just over one week.
What is the status of the News Media Bargaining Code today?
Despite Facebook’s objections, the Australian parliament passed the Treasury Laws Amendment (News Media and Digital Platforms Mandatory Bargaining Code) Bill 2021 in late February 2021. This final version of the law took effect in March 2021 and contains the following key elements:
- Digital platforms are required to negotiate in good faith with registered news media businesses to pay for content
- If no deal is reached, there is a binding arbitration process
- The arbiter must consider the benefits news content provides to the digital platform
- Failure to comply can lead to penalties of up to 10% of the platform’s Australian revenue
However, the final law did include two concessions that Facebook and Google had pushed for:
- Two-month mediation period before binding arbitration
- Non-discrimination provisions so platforms don’t have to pay some publishers if they don’t pay others
Since the law took effect, Facebook and Google have taken different approaches. Google rushed to make licensing deals with major Australian news publishers. Facebook took a slower approach, but has since signed deals with some media organizations including Seven West Media, Nine Entertainment, and the Australian Associated Press.
Has Facebook paid for news content under this code?
Yes, Facebook has begun paying multiple news publishers in Australia for content under the terms of the News Media Bargaining Code. Some of the deals publicly reported include:
| News Publisher | Reported Value of Facebook Deal |
|---|---|
| Nine Entertainment | $30 million per year |
| Seven West Media | $30 million over 3 years |
| The Guardian (Australia) | Undisclosed “seven figure” sum |
The terms of the deals are negotiated privately between Facebook and each publisher. However, these sample reports indicate that Facebook has been willing to pay millions of dollars per year to major Australian news companies under the new laws. The exact sums paid by Facebook remain confidential in most cases.
Is Facebook still blocking news in Australia today?
No, as of October 2022, Facebook is not blocking news content from being shared and viewed in Australia. After lifting its temporary one-week news ban in February 2021, Facebook has not repeated such a drastic measure. Australian news publishers can once again freely share content on Facebook. Users in Australia also have full access to share and read news from Australian and global sources.
Facebook’s public policy is now to comply with the News Media Bargaining Code by negotiating licensing deals with Australian news organizations. They have signed a number of deals over the past two years, although the full list of publishers being paid by Facebook has not been publicly released.
The News Media Bargaining Code appears to have succeeded in its goal of getting the tech giants to pay Australian news publishers for content. Both Facebook and Google now have commercial licensing agreements with many major Australian news companies. However, Facebook only took this approach after first trying to avoid payments through its temporary news ban.
Could Facebook block news in Australia again?
While highly unlikely, it is theoretically possible that Facebook could choose to reinstate a news block on Australian content if future disputes arise over the News Media Bargaining Code. There are a few scenarios where Facebook might consider another news ban:
- If negotiations broke down again and no licensing deals could be reached
- If Australia tried to significantly expand the law’s requirements or scale up the penalties for non-compliance
- As a negotiating tactic to push back against unwanted changes or get concessions from the government
However, another outright ban risks further public damage to Facebook’s reputation. It seems more probable that Facebook would try to address any future concerns through negotiations and more targeted measures rather than a broad news ban. But the week-long ban in 2021 shows Facebook is willing to take drastic steps in disputes over content licensing payments.
Could this Australian policy spread to other countries?
Australia’s mandated news bargaining code is the first of its kind globally. But there are signs that other countries are watching closely and may follow Australia’s lead in passing similar laws:
- In April 2021, Canada’s federal heritage minister said the government plans to introduce legislation modeled after Australia’s code.
- In July 2021, the European Union unveiled sweeping new regulations, the Digital Markets Act, that will give news companies more leverage in negotiations with tech giants.
- Multiple politicians in the UK and the US have advocated for Australian-style laws to support news publishers.
Facebook and Google will likely try to lobby against widespread adoption of Australia’s approach. But with news publishers around the world struggling financially, there is growing pressure for governments to intervene through mandatory content licensing deals and payments.
Conclusion
Facebook’s temporary ban on news in Australia made headlines around the world in early 2021. It was an unprecedented escalation of tensions between the tech giants and news publishers over content licensing payments. While the news ban only lasted about one week, it demonstrated Facebook’s willingness to take dramatic action in response to mandated bargaining laws.
Today, Facebook has signed licensing deals to pay multiple Australian news publishers under the terms of the new Australian code. But only after first trying to avoid payment through banning news. As other countries consider similar laws, it remains to be seen whether Facebook might consider resurrecting news bans elsewhere. For now, Facebook remains an important source of traffic for news publishers, even as tensions linger over fair compensation for professional journalism.