Meta, the parent company of Facebook, has recently announced that it is going to close the news tab of Facebook in the United States and Australia. The decision is going to be implemented by April 2024. For the past few years, Meta has been making efforts to allocate its resources effectively and focus on products and services. Also, it will save the company from new regulations and complexities in payments that can not only save time and effort but also reduce the workload. Last year, Meta closed Facebook News in Germany, the UK, and France, and the recent announcement is the continuation of those efforts.
Reasons for Closure of News Tab
The Facebook News tab came to the party in October 2019. The primary purpose of this feature is to provide the users with news content so that they can stay updated with everyday happenings. The dedicated tab was accessible directly from the bookmarks section present on the app. In the beginning, this feature gains significant attention. However, recent trends have clarified that users are not paying specific or desired level of attention to this tab. This pumped Meta to reconsider its working strategy.
Upon evaluation, the company has noticed that there is an enormous reduction in the number of Facebook users accessing the News tab. The reduction was primarily seen in the US and Australia. On average, a total of 80% decline in the users number is seen. As a result, the company has estimated that the visitors are no more interested in News. In fact, they use this giant social media platform to entertain themselves, connect with others, and unveil new opportunities.
Legislative Context
In 2021, Facebook and Google collectively signed a deal with Australian publishers, which was estimated to be worth $200 million. These deals were signed to make sure that the platform is not under the news media regulations of the Australian government. Hence, Facebook and Google can easily negotiate with news publishers for the use of news content on their platforms.
Implications for Publishers
The implication of the decision will result in the abandonment of the compensation received by the Australian publishers for their news content. Meta has also informed the publishers that no new deals will be signed once the current one will be expired. Ultimately, the news tab will no longer exist in the United States and Australia.
Global Impacts
While the News tab was already closed in the UK, France, and Germany last year, this new decision will also have significant impacts worldwide. Nevertheless, the company is hopeful to get positive outcomes. The primary reason is that only 3% of Facebook users were interested in the news section. Consequently, the closure will ultimately enable them to explore other sections and types of content present on this platform.
