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Australia passed law requiring Google and Facebook to pay media

2021-02-25T17:55:17.941Z


The law that will force tech companies like Facebook and Google to pay publishers for news content. Facebook restores access to news in Australia 1:10 (CNN Business) - Australia passed a new law that will force tech companies to pay publishers for news content, setting the stage for possible similar actions in other countries. The new code, which the Australian Parliament approved on Thursday, "will ensure that media companies receive fair remuneration for the content they generate," Australia


Facebook restores access to news in Australia 1:10

(CNN Business) -

Australia passed a new law that will force tech companies to pay publishers for news content, setting the stage for possible similar actions in other countries.

The new code, which the Australian Parliament approved on Thursday, "will ensure that media companies receive fair remuneration for the content they generate," Australian treasurer Josh Frydenberg said in a statement.

The country's unprecedented new law has been hotly debated in recent months.

Facebook and Google had opposed the initial version of the legislation, which would have allowed the media to negotiate individually or collectively with them, and enter into binding arbitration if the parties were unable to reach an agreement.

  • Facebook to restore news pages in Australia after government talks

Strong criticism of Facebook for decision in Australia 1:05

Facebook even shut down news pages in Australia last week in opposition to the legislation.

But earlier this week he said he would reinstate them after the country made some changes to the code, including a provision that 'should take into account whether a digital platform has made a significant contribution to the sustainability of the Australian news industry to through reaching commercial agreements with news media companies.

Meanwhile, arbitration will now only be used as a 'last resort' after a period of 'good faith' mediation.

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Facebook said after those reviews were made that the new agreement would allow it to "support publishers of our choosing."

He later revealed a deal with major Australian news company Seven West Media, with plans to sign more with other publishers.

Google, meanwhile, had already been trying to get ahead of the new legislation by announcing partnerships with media organizations in Australia, including Seven's News Corp and Rupert Murdoch.

The Australian government said the code will be reviewed by the Treasury Department after one year to "ensure that it delivers results that are consistent with the intention of government policy."

What does the term #DeleteFacebook mean?

1:49

While Facebook has found a solution to its problems in Australia, it still vigorously defends its opposition to similar far-reaching measures.

"Events in Australia show the danger of camouflaging a cash subsidy offer behind distortions in how the Internet works," Nick Clegg, the company's vice president of global affairs, wrote in a blog post Wednesday.

Clegg, a former UK Deputy Prime Minister, spoke up about the company's decision to stop sharing news in the country in his statement, acknowledging that the move "would have felt abrupt and dramatic to many."

"It was not a decision taken lightly," he wrote, adding that the company "had been in discussions with the Australian government for three years trying to explain why this proposed law, without amendments, was unworkable."

The company had no choice but to take swift action last week, he argued, "because it was legally necessary to do so before the new law took effect."

The showdown is scheduled to continue.

Similar case studies may soon emerge in other countries, and the United States and the European Union are facing increasing pressure to take such action.

The government of Canada has also said it plans to introduce legislation in the coming months.

- Julia Horowitz contributed to this report.

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Source: cnnespanol

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