Meta Could Remove US News Content Amid Senate Passed JCPA Act in September

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Multiple news outlets have indicated that Meta has threatened to pull out news content from Facebook in the United States. There is supposedly new law that would offer news organizations extreme power to discuss fees for the content shared on Facebook. However, a similar law was also passed in Australia that steered to news on Facebook but was suspended in 2021.

Meta also claimed that their social platform actually provides boosted organic traffic to various struggling news outlets. The platform said publishers post their content on Facebook because it is more beneficial for their bottom line. This specific legislation is called the JCPA (Journalism Competition and Preservation Act). Minnesota Senator Amy Klobuchar presented the legislation with bipartisan support.

This legislation will provide much greater power to broadcasters and publishers. They can inclusively settle with social media firms and platforms for a massive share of ad revenue. Some companies have argued that Meta is generating massive amounts of money from news articles shared on its platform. However, Meta gained huge profits during the pandemic, while local news outlets were found struggling.

Australia Introduced a Similar Law in March 2021

Meanwhile, Meta also argued that this narrative isn’t correct instead saying the company moves traffic to news sources. A spokesperson for Meta, Andy Stone, issued a statement regarding the law. He said Congress seeks to pass an ill-considered journalism bill and it could become part of national security legislation. So, it could eventually push the company to consider pulling out news from its platform.

Meta also stressed that sharing news on Facebook accounts is just a small portion of its huge revenue. It is important that Australia imposed a similar law in the month of March 2021. It generated a significant closure of Facebook news feeds in Australia. Facebook rapidly reversed the decision after a massive amount of criticism after a mediating deal with the government of Australia.

Meta Gains 4% of the Total Revenue from News Feed

A spokesperson for Meta issued a statement regarding the proposed Australian law last year. He said the business profit of Facebook from newsfeed isn’t massive. This amount adds less than 4% of the revenue from the content people experience in their News Feed. However, the US legislation is part of a wide range of laws designed to tackle the supremacy of Big Tech.

Meanwhile, the JCPA backers said social media could become America’s de facto local newspapers after not passing the legislation. The Director of Research at the American Economic Liberties Project, Matt Stoller, said Meta has eaten alive various media outlets. The efforts of Meta to blackmail Congress again proved that Meta’s supposed monopoly is a real threat to worldwide democracies.

Senate Judiciary Committee Passed the JPCA in September

In September 2022, the Senate Judiciary Committee passed the JPCA (Journalism Competition Preservation Act) amid a 15-7 vote. However, Klobuchar and Senator John Kennedy lead this bipartisan, bicameral legislation. The key objective of this legislation was to address dominant online platforms’ power over news organizations. Klobuchar posted breaking news on its website.

The website said the Senate Judiciary Committee has once again got up to syndicate tech firms with bipartisan legislation. Klobuchar said she is the daughter of a newspaperman and efficiently understands the key role of a free press empowering democracy. However, local news outlets are experiencing existing crises with newspapers closing and dropping ad revenues.

Rural Communities have Become News Deserts

Meanwhile, most rural communities are becoming news deserts without local reporting access. She said some elements need the power to preserve strong and independent journalism. The US government must ensure the capability of news organizations to negotiate on a level playing field with online platforms. Online platforms are emerging to dominate digital advertising and news distribution.

Klobuchar said this bipartisan legislation will ensure media outlets bring band altogether. It would enable them to negotiate for significant compensation from the Big Tech firms. These companies are getting profit from their news content and enabling journalists to continue their work to keep communities conversant. This bill has now reached to Judiciary Committee with a powerful bipartisan vote.