Facebook owner Meta is considering blocking news content from the platform in Australia if the government makes it pay licensing fees, according to a company representative.

Meta's regional policy director Mia Garlick told Australian parliament "all options are on the table" when asked if the company would block Australians from sharing news content to avoid paying fees.

"There's a large number of channels that people can get news content from," Garlick told the inquiry.

She said Meta was waiting for Canberra to decide if it would apply an untested 2021 law which gives the government the right to set the fees U.S. tech giants pay media outlets for links.

The comments are the strongest indication so far that Meta would take the same hardline approach in Australia it took in Canada in 2023 when that country introduced similar laws.

Meta struck deals with Australian media firms including News Corp and the Australian Broadcasting Corp when the law was brought in Australia, but has since said it will not renew those arrangements beyond 2024.

The decision now lies with Australian Treasury to decide on how to proceed.