Beyond Meta: Why local publishers are essential for marketers
Today, if more than half of your paid media relies solely on Meta and Google, it’s time to sound the alarm. Ori Gold, CEO of Bench Media, explains why it’s time for Australia to stand up to the tech titans.
Remember the earthquakes felt in the media landscape when Meta flexed its muscles against the Australian government in 2021?
Back then, Australia’s swift and decisive action, demonstrated by the landmark News Media Bargaining Code, forced the tech giant to the negotiation table and secured a historic $200 million win for Australian journalism (with $70M from Meta alone). This pivotal moment set a global precedent that continues to resonate.
Lessons from Canada: Why Australia must act decisively
This article is littered with fundamental misunderstandings and errors.
Firstly, the news ban in Canada didn’t start in Feburary 2023. It started at the end of July 2023.
Secondly, you’re misattributing the reason for the news ban in Canada. It wasn’t anything to do with the makeup of the Canadian law itself. No the Canadian law is not weak; if anything it is stronger than the Australian one. And yes, it does have a binding arbitration mechanism.
The reason for the news ban in Canada is simply that it is 2024, and not 2021. The News Media Bargaining Code was indeed a “world first”, but now that others have followed along it has meant Meta has needed to ask themselves a fundamental quesion: is being in the news industry really worth it? Their answer in 2021 was still “maybe”. Their answer in 2024 is “no”.
The Candian law forces platforms to be “designated” (i.e. it’s stronger). The Australian one is “slow-moving” and makes that a job for the Treasurer. That’s why a news ban v2 hasn’t already happened in Australia. As soon as designation happens, the news ban will start.
Lastly, I’m not sure why you’re under the impression that Meta would need to leave Australia? These “link taxes” like the News Media Bargaining Code and Canada’s Online News Act are designed with the goal of “making platforms pay for the news that they use”. If they simply impose a news ban in Australia just like they did in Canada, then they are not “using” news anymore, and will be fully complying with the law by not paying anything.
If these laws were setup as a simple tax/levy like many were suggesting at the time it would be a different question. They can’t not pay tax that they are legally required to pay. But if laws are based on flawed logic, it’s no surprise they lead to unintended outcomes.