Australia officially passes law to make Facebook, Google pay for news
Australian lawmakers passed the final amendments Thursday to a law requiring Facebook and Google to pay media companies for news.
Both tech giants fought the law, formally known as the News Media and Digital Platforms Mandatory Bargaining Code, with Facebook going so far as to briefly ban news sharing on its platform Down Under.
The code requires Facebook and Google to negotiate in good faith with Australian news organizations, the Associated Press reported. If the tech giants refuse to bargain, then an independent arbiter would settle the dispute.
Australian lawmakers said the arbitration section was important, because Facebook and Google would otherwise have far greater leverage in negotiations because of their market dominance.
“Our commitment to legislating the Code reflects the importance of a diverse and well-resourced news media sector to our democracy and the Australian people,” Australian Treasurer Josh Frydenberg said in a press release.
The law was first pitched in April 2020, and companies started making deals earlier this year, with Google and Australian news giant Seven West Media becoming the first major stakeholders to strike an agreement in mid-February.
