Sydney: The Australian parliament has passed the 'News Media and Digital Platforms Mandatory Bargaining Code' on Thursday that will make it compulsory for global digital platforms to pay media companies for showing Australian news content.
The new code makes Australia the first country where a government arbitrator will set the rates that tech giants have to pay if negotiations with media companies fail.
Facebook and Google main targets of the legislation, had fiercely opposed in return for agreeing to pay local media companies.
However, the law easily passed after tech firms, reached agreements to pay country's news organizations to avoide for being subjected to tough mandatory bargaining rules under the regulation.
The new law paves the way for Google and Facebook to invest tens of millions of dollars in local content deals, and could prove a model for resolving the firms' tussles with regulators worldwide.
The government said the law, called the 'News Media and Digital Platforms Mandatory Bargaining Code', would ensure that news businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia.
The News Media and Digital Platforms Mandatory Bargaining Code has passed through the Parliament.— Paul Fletcher (@PaulFletcherMP) February 24, 2021
We believe the Code will support a diverse and sustainable public interest news sector in Australia. #auspol pic.twitter.com/xam4IeV9xr
Other countries have introduced legislation forcing major technology companies to negotiate with media companies for licensing fees for links that draw traffic, and advertising revenue, to their platforms.