"Facebook's actions to unfriend Australia today, cutting off essential information services on health and emergency services, were as arrogant as they were disappointing," he said.
"I am in regular contact with the leaders of other nations on these issues. We simply won't be intimidated," he added.
Mr Morrison urged Facebook to work constructively with the government, "as Google recently demonstrated in good faith".
Treasurer Josh Frydenberg said the ban on news information had a "huge community impact". About 17 million Australians visit the social media site every month.
Consumption of digital news through social media and search engines is growing in Australia, according to the Reuters Digital News Report for 2020.
Some 37% of consumers who took part said they had gained access to news via social media over the course of a week, compared with 31% who had directly accessed websites or apps, the report said.
Western Australia Premier Mark McGowan accused Facebook of "behaving like a North Korean dictator".