Tech Titans Facebook & Google Now Need to Pay to Publish News Content in Australia

The Australian parliament on Thursday (Feb 25) passed the News Media and Digital Platforms Mandatory Bargaining Code, marking the first intervention by a government in platform-publisher relationships. If put into effect, the law will give an independent government arbitrator the right to direct companies such as Facebook and Google to pay publishers for news content that appears on their platforms.

Treasurer Josh Frydenberg mentioned that move seeks to ensure that “news media businesses are fairly remunerated for the content they generate.” It has also been seen as a step forward in regulating the power and dominance held by these companies online in areas like advertising.

Despite fervent opposition in fears that the new law would threaten their existing operating models, both companies have announced that they will be investing significantly in news content over the next three years and are already in talks with media outlets regarding new deals.

The legislation comes on the heels of a platform-wide news ban imposed by Facebook in the country as an act of opposition to the law and it has garnered significant attention from governments worldwide.