Australia’s parliament officially approved a landmark law on Thursday that required tech titans to pay for news content after intense public opposition from Facebook and Google.
The first measure of its kind overcame its latest hurdle when parliament passed a series of amendments made to appease Facebook, which prevented Australian users from viewing or sharing news articles last week.
Australian lawmakers said the law coming into force will address the “imbalance of bargaining power” between tech platforms and news publishers, though its final form gives Facebook and Google more leeway to negotiate.
“The code will ensure that media companies are fairly compensated for the content they generate, which will help to maintain public interest journalism in Australia,” Australian Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement.
Officials pushed the law even after Facebook imposed a roughly five-day news blackout on Australia, an unprecedented move that sparked widespread outrage.
Google had similarly threatened to shut down its search engine in Australia if the proposal became law, but the Silicon Valley giant ended up taking a more conciliatory approach of doing deals with publishers, including News Corp., which owns The Post.
Facebook lifted its news blackout this week after reaching a compromise with Australian lawmakers on amendments to the law. A key change gave Frydenberg the discretion to decide that Facebook or Google need not be bound by the code if they make a “significant contribution to the sustainability of the Australian news industry.”
Businesses will also have more time to negotiate with publishers before being forced to negotiate through arbitration, a process in which a third party would decide how much technology platforms should pay.
“The Australian government has accepted changes that mean fair negotiations are encouraged without the imminent threat of heavy-handed and unpredictable arbitration,” Nick Clegg, Facebook’s vice president of global affairs, said in a blog post this week.
Rod Sims, chairman of the Australian Competition and Consumers Commission that originally drafted the law, said the version approved by lawmakers would achieve its goal even if tech giants take time to reach deals with publishers.
“[These] things take time, ”said Sims. “Google and Facebook don’t have unlimited resources to talk to everyone. I think this has a long way to go. “
With pole cables