Digital platforms such as Google and Facebook will now need to pay when linking content in search results and news feeds from local media outlets and publishers in Australia, according to the country's new media law.
Facebook, Google to Pay for News
The move comes just days after the Australian government made some last-minute changes to the bill. The law is now known as the News Media and Digital Platforms Mandatory Bargaining Code.
In a joint statement by Australia's Communications Minister Paul Fletcher and Treasurer Josh Frydenberg, they said that the media law aims to help sustain the public's interest in journalism in Australia. This is through ensuring that media companies receive fair compensation for the content that they produce.
Moreover, the statement also said that the government was very pleased with the progress by tech giants, Facebook and Google, in brokering agreements with the news media businesses in Australia. Officials also stated that the code will be reviewed by the Treasury after one year of its commencement.
Since last year, both Google and Facebook have fought against the media law.
The move by the officials will put Australia as the first country where a government-appointed arbitrator can decide on the final price that either platform will have to pay news publishers in Australia, provided that a commercial deal cannot be reached independently.
According to CNBC, numerous experts stated that the decision will come by a ruling in favor of either party, whether the digital platform or the publisher, with no room for middle-ground agreement.
In the amendments this week, the government stated that every party involved will be having a two-month mediation period to broker deals before they will be entering arbitration as a last resort.
Earlier Facebook decided to block access to news content in Australia in retaliation against the then proposed bill, but on Monday, the giant will restore news pages in Australia.
On Tuesday, the vice president for global news partnerships of Facebook, Campbell Brown shared that the Australian officials clarified that they will retain their ability to decide if news appears on its platform so that it will not automatically be subject to a forced negotiation, Deutsche Welle reported.
Initially, tech giant Google threatened to pull out its search function from Australia. But in recent weeks, it struck numerous prominent commercial agreements with publishers in Australia, which includes the Murdoch family-owned media conglomerate NewsCorp.
Facebook Claimed Victory
Before passing the parliament, the law was considered and described this week by both Australia's competition watchdog and Facebook as a victory for both parties.
Nick Clegg, the former United Kingdom Deputy Prime Minister, who is the current vice president for global affairs at the social media platform, shared the decision of Facebook in restricting and then restoring news in Australia in a lengthy blog post, CNET reported.
Based on an associate professor of journalism at the Monash University in Australia, the final tweaks made to the media law appears to be a face-saving exercise for both sides, but it favors more for Facebook.
Related article : Facebook Steps Down from Australia News Ban After Law Compromise
