Australia passes new law requiring Facebook and Google to pay for the news

The new code, approved by the Australian parliament on Thursday, “ensures that media companies are fairly rewarded for the content they create,” said Australian treasurer Josh Frydenberg.

Facebook is restoring Australian news after talks with the government
The country’s unprecedented new law has been hotly debated in recent months. Facebook (FB) and Google (GOOGL) opposed the original version of the legislation, which would have allowed the press to bargain with them, either individually or jointly – and to initiate compulsory arbitration if the parties could not reach an agreement.

Facebook even last week closed news sites in Australia against the law. But he restored them earlier this week 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 by entering into commercial agreements with media companies. . “

Arbitration will henceforth only be a “final solution” after a period of “good faith” mediation.

Facebook said after the reviews that the new agreement will allow it to “support the publishers of our choice.” He later made an agreement with an Australian news company called Seven West Media.

Google, meanwhile, has already tried to circumvent the new legislation by announcing a partnership with Australian media organizations including Seven and Rupert Murdoch News Corp. (NWS).

The Australian government has said the code will be reviewed by the Treasury in a year ‘s time to ensure it “ensures that the government’ s political will achieve results”.