MELBOURNE, Australia (CU)_Australia’s laws that require Google and Facebook to pay for news are ready to take effect, although the architect of the laws said it would take time for the tech giants to hit media deals. With the new law, Australia becomes the first country to set the rates for the tech giants to pay, if talks with media firms fail. On Thursday, the Australian parliament passed a mandatory negotiating code for news media and digital channels that will make it compulsory for Google and Facebook to pay media companies for content.
Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement that the law will be checked within one year of its inception. The statement said: “The code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public-interest journalism in Australia.”
The new law, which was established after a thorough review by the Australian anti-trust regulator with nearly three years of public consultation, could also encourage countries like Britain and Canada that are planning to pass similar laws. Some countries have enacted laws requiring major technology firms to bargain with media companies for licensing fees for connections to their websites to generate traffic and advertisement revenue.
Frydenberg and Fletcher said the government was satisfied to see progress by both Google and Facebook in achieving commercial agreements with Australian news media. Last week, amid tensed discussions with the government, Facebook blocked news content in Australia, a move which sparked criticism from several countries in the West.
