Meta to stop paying for news

FACEBOOK will stop paying newspaper publishers and will shut down its news section entirely, saying that people do not come to the social network for such content.

Meta, Facebook’s parent company, said it would wind down deals with US and Australian publishers and remove a news tab, which had served users a feed of articles, next month.

It said people would still be able to read news on Facebook posted by their friends and by accounts they follow, including those of news publishers. The company did the same last year in the UK and Europe, but shutting down its news unit in the remaining countries will result in Facebook effectively ending its relationships with news companies, many of which had bet their future on millions of readers arriving from social media.

The announcement provoked a furious response from the government in Australia, which introduced laws requiring internet companies and news groups to reach licensing deals in 2021.

Meta had paid out millions of pounds to publishers around the world in subsequent years after claims the tech giant was profiting from their work. Anthony Albanese, Australia’s prime minister, said: “We know that it’s absolutely critical that the media is able to function properly and be properly funded. Journalism is important and the idea that research and work done by others can be taken free is simply untenable.”

The Australian government said it was seeking advice on next steps it could take under its news media bargaining code, which gov- erns relationships between news and internet companies and has led to dozens of deals between them.

Meta said: “As a company, we have to focus our time and resources on things people tell us they want to see more of on the platform, including short form video.

“The number of people using Facebook News in Australia and the US dropped by more than 80pc last year. We know that people don’t come to Facebook for news and political content – they come to connect with people and discover new opportunities, passions and interests.”

Sir Nick Clegg, Meta’s head of global affairs, had championed the company’s payments to news publishers as something that “keeps journalism sustainable”.

The incoming Digital Markets Bill in the UK is expected to put pressure on big internet companies to pay news publishers.