The Australian parliament officially passed a historic law on Thursday, effectively forcing tech titans to pay for news content after intense public opposition from Facebook and Google.
The unprecedented move overcame its last hurdle when parliament passed a set of amendments made to appease Facebook, which prevented Australian users from seeing or sharing news last week.
Australian lawmakers said the law that is due to go into effect will address the “imbalance of bargaining power” between technology platforms and news publishers, although its final form gives Facebook and Google more freedom to negotiate.
“The code will ensure that news media companies are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia,” Australian treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a statement. joint statement.
Authorities pushed the law forward even after Facebook imposed a five-day news blackout in Australia, an unprecedented move that has generated widespread outrage.
Google had also threatened to shut down its search engine in Australia if the proposal became law, but the Silicon Valley giant ended up taking a more conciliatory approach to making deals with publishers, including The Post, which owns News Corp.
Facebook lifted its news block this week after reaching an agreement with Australian lawmakers on amendments to the law. A major change has given Frydenberg the freedom to decide that Facebook or Google need not be subject to the code if they make a “significant contribution to the sustainability of the Australian news industry”.
Companies will also have more time to negotiate with publishers before being forced into arbitration deals, a process in which a third party will decide how much technology platforms should pay.
“The Australian government has agreed to changes that mean that fair negotiations are encouraged without the imminent threat of heavy and unpredictable arbitration,” said Nick Clegg, Facebook’s vice president of global affairs, in a blog this week.
Rod Sims, chairman of the Australian Competition and Consumer Commission, which originally drafted the law, said the version passed by lawmakers would achieve its goal even if the tech giants take a while to make deals with publishers.
“[These] things take time, ”said Sims. “Google and Facebook don’t have unlimited resources to go around talking to everyone. I think there is still a long way to go ”.
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