Australia to create Facebook and Google Pay News Outlets for content

Under laws that will go to parliament this week, Treasurer Josh Freidenberg said that big tech companies should negotiate with local publishers and broadcasters over how much they pay for the content that appears on their platforms. If they cannot close a deal, the government appointed arbitrator will decide.

Sydney:

Australia put the finishing touches to plans on Tuesday to have Facebook Inc and Google pay their media for news content, a first step in the world aimed at protecting the independent press that the internet giants have vehemently opposed.

Under laws that will go to parliament this week, Treasurer Josh Freidenberg said that big tech companies should negotiate with local publishers and broadcasters over how much they pay for the content that appears on their platforms. If they cannot close a deal, the government appointed arbitrator will decide.

"This is a huge reform ... this is the first of its kind in the world ... and the world is watching what is happening here in Australia," Friedenberg told reporters in the capital, Canberra.

"Our legislation will help ensure that the rules of the digital world reflect the rules of the physical world ... and ultimately preserve our media landscape."

The law is the strongest test of the market power of tech giants globally, and it comes after three years of inquiry and advice, which ultimately led to a public squabble in August when US companies warned that they might prevent them from providing their services in Australia.

Facebook Australia's managing director, Will Easton, said Tuesday that the company will review the legislation and "participate in the upcoming parliamentary process with the goal of creating a working framework to support Australia's news ecosystem".

A representative for Google declined to comment, saying the company had not yet seen the final version of the proposed law.

Until recently, most countries were standing idly by as advertisers redirected spending to the world's largest social media website and search engine, leading to newsrooms starving their main source of revenue and widespread shutdowns and job losses.