A PYMNTS Company

Meta Asserts Exemption from Indonesia’s New News Payment Law

By  |  February 22, 2024
Meta

Meta Platforms, the parent company of Facebook, has stated its interpretation of Indonesia’s new law regarding payment for news content shared on digital platforms. The law, signed by Indonesia’s president this week, mandates that digital platforms compensate media outlets for the content they provide. However, Meta believes that the law does not require them to pay for content that publishers voluntarily post on their platforms.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Rafael Frankel, Meta’s director of public policy for Southeast Asia, emphasized the outcome of multiple consultations with the government, indicating that Meta will not be obligated to remunerate news publishers for voluntarily posted content. This interpretation contrasts with the expectations set by the new law, which is scheduled to come into effect in six months, reported Reuters.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    The legislation outlines that digital platforms and news publishers should establish partnerships, potentially through paid licenses, revenue sharing, or data sharing arrangements. Nevertheless, many details regarding the implementation of these agreements remain unclear.

    Read more: Meta Could Face A $925M Tax Bill From Italy After Probe

    Globally, governments have expressed concerns over what they perceive as an unequal power dynamic between digital platforms and news publishers. Australia set a precedent with its News Media Bargaining Code, which came into effect in March 2021. Subsequently, Meta and Google entered into agreements with media outlets to compensate them for content that drives engagement and advertising revenue.

    The unfolding situation in Indonesia underscores the ongoing debate surrounding the regulation of digital platforms and their relationship with traditional news publishers.

    Source: Reuters