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Facebook has threatened to cut off Australian publishers and users from sharing local and international news on its platform and Instagram.
The social media behemoth wrote to the NZ Herald today that it will "reluctantly withdraw the ability for publishers and people in Australia to distribute news on Facebook and Instagram" in response to proposed legislation.
The Australian Government wants to introduce a law which aims to have Facebook and fellow internet giant Google financially compensate publishers for the content and value they provide to the global platforms.
Google has also raised issue with the Australian Government's proposal, saying it would see a "dramatically worse" search engine and YouTube (Google-owned) product provided to consumers Downunder.
In Facebook's email to the Herald, representative Andrew Hunter said the potential law has "many serious flaws" and misunderstands the relationship between the news media and social media.
"Assuming this proposed legislation becomes law, we will reluctantly withdraw the ability for publishers and people in Australia to distribute news on Facebook and Instagram. This is not our first choice - it is our last. We would support regulation that truly served the long-term interests of Australian consumers," he said.
In a statement also posted online yesterday, Will Easton, the managing director for Facebook Australia & New Zealand, said the proposed regulation misunderstood "the dynamics of the internet and will do damage to the very news organisations the government is trying to protect".
Easton said stopping Australians from sharing news articles "is the only way" to protect itself against an outcome that "defies logic and will hurt, not help" the long-term vibrancy of Australia's news and media sector.
Despite this, he said Facebook shares the Australian Government's goal of supporting news organisations, particularly local newspapers.
"But its solution is counterproductive to that goal. The proposed law is unprecedented in its reach and seeks to regulate every aspect of how tech companies do business with news publishers."
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