WASHINGTON: Facebook parent Meta Platforms Inc. on Monday threatened to remove news from its platform if the US Congress passes a proposal aimed at making it easier for news organizations to negotiate collectively with companies like Alphabet Inc鈥檚 Google and Facebook.
Sources briefed on the matter said lawmakers are considering adding the Journalism Competition and Preservation Act to a must-pass annual defense bill as way to help the struggling local news industry.
Meta spokesperson Andy Stone in a tweet said the company would be forced to consider removing news if the law was passed 鈥渞ather than submit to government-mandated negotiations that unfairly disregard any value we provide to news outlets through increased traffic and subscriptions.鈥�
He added the proposal fails to recognize that publishers and broadcasters put content on the platform because 鈥渋t benefits their bottom line 鈥� not the other way around.鈥�
The News Media Alliance, a trade group representing newspaper publishers, is urging Congress to add the bill to the defense bill, arguing that 鈥渓ocal papers cannot afford to endure several more years of Big Tech鈥檚 use and abuse, and time to take action is dwindling. If Congress does not act soon, we risk allowing social media to become America鈥檚 de facto local newspaper.鈥�
More than two dozen groups including the American Civil Liberties Union, Public Knowledge and the Computer & Communications Industry Association on Monday urged Congress not to approve the local news bill saying it would 鈥渃reate an ill-advised antitrust exemption for publishers and broadcasters鈥� and argued the bill does not require 鈥渇unds gained through negotiation or arbitration will even be paid to journalists.鈥�
A similar Australian law, which took effect in March 2021 after talks with the big tech firms led to a brief shutdown of Facebook news feeds in the country, has largely worked, a government report said.
Since the News Media Bargaining Code took effect, various tech firms including Meta and Alphabet have signed more than 30 deals with media outlets, compensating them for content that generated clicks and advertising dollars, the report added.