Australia passes paid news content law
Australia passed a law that pitted it against Facebook and Google as they will now have to pay for Australian new content.
CNBC’s Saheli Roy Choudhuri reported:
The move was widely expected and comes days after the government introduced some last-minute amendments to the proposed bill, known officially as the News Media and Digital Platforms Mandatory Bargaining Code.
CNN’s Chandler Thornton wrote:
The country’s unprecedented new law had been hotly debated in recent months. Facebook (FB) and Google (GOOGL) had opposed the initial version of the legislation, which would have allowed media outlets to bargain either individually or collectively with them — and to enter binding arbitration if the parties couldn’t reach an agreement.
Daniel van Boom and Queenie Wong from CNet noted:
The routine vote on the Code belies a half year of conflict between Australia and the internet titans. At one point, Google threatened to pull its search product out of the country, only to meekly cut deals with Australia’s biggest publishers for an estimated total of well over AU$60 million ($47 million). Similarly, Facebook took the unprecedented step of cutting news out of feeds in Australia for five days before pledging to restore it after the government offered concessions to the code. Facebook says it will begin to restore Australian news before the weekend.