Australia Forces Tech Giants To Pay News Publishers with Law

On Thursday, the Australian parliament passed an unprecedented law that forces tech companies to pay publishers for news content on their platforms.

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The legislation "will ensure that news media businesses are fairly remunerated for the content they generate," Treasurer Josh Frydenberg said in a statement. These giants such as Facebook and Google have firmly rejected the initiative.

The News Media Bargaining Code establishes that tech companies have to strike deals with publishers directly. If no agreement is reached, an independent arbitrator can set the amount of money domestic media are paid. Moreover,  the companies have to report changes on their algorithms since they influence the content's display.

Although Google and Facebook have argued that they already contribute to a local media outlet by redirecting users to those websites,  the authorities say the new code sets a "fairer" negotiation process. Meanwhile, the tech giants have tried to pressure the government by blocking sites and suspending search engine operations over fears that this law could replicate the legislation elsewhere in the world.